Salvage value Terminal cash flows, Finance, Other Engineering

Salvage value Terminal cash flows, Finance, Other Engineering

Assignment Help:

Terminal cash flows

Salvage value

Salvage value (SV) is the most common example of terminal cash flows. Salvage value may be defined as the market price of an investment at the time of its sale. The cash proceeds net of taxes from the sale of the assets will be treated as cash inflows in the terminal (last) year. As per the existing tax laws in India, no immediate tax liability (or tax savings) will arise on the sale of an asset because the value of the asset sold is adjusted in the depreciable bases of assets.

The effects of the salvage values of existing and new assets may be summarized as follows:

• Salvage value of the new asset it will increase cash inflows in the terminal (last) period of the new investment.

• Salvage value of the existing asset now it will reduce the initial cash outlay of the new asset.

• Salvage value of the existing asset at the end of its normal life it will reduce the cash flow of the new investment of in the period in which the existing asset is sold.

Related Discussions:- Salvage value Terminal cash flows, Finance

Standard cost, Standard cost of the product

Standard cost of the product

Binary cycle, Consider the binary cycle using the sodium and steam/water in...

Consider the binary cycle using the sodium and steam/water in the sketch below and operating at conditions in Table 1. Draw T S Diagram and find the thermal cycle efficiency

Dual input unbalanced output differential amplifier ac analy, analysis of d...

analysis of dual input unbalanced output differential amplifier ac analysis?

Econometrics of Financial Derivatives, I''d like to receive a recommended b...

I''d like to receive a recommended book to be able to price fixed income derivatives when there is not already a martet to to calibrate models. I need to use econometrics book to e

Evolutionary growth approach, Evolutionary Growth Approach Mimic how bo...

Evolutionary Growth Approach Mimic how bones / plant roots add material to regions under high stress and reduce material where there is small stress • Apply load to structure

Commercial buildings - fire protection engineering, Commercial buildings - ...

Commercial buildings - fire protection engineering: The term 'commercial buildings' refers to any buildings that are not residential buildings and that do not fall under the m

Unit cell, Q. What is a unit cell? Ans. UNIT CELL AND LATTICE CONST...

Q. What is a unit cell? Ans. UNIT CELL AND LATTICE CONSTANT: The smallest components of space lattice are known as unit cell or in other words when the smallest unit repea

Regarding my project, i want to do project in the area wing in aircraft...p...

i want to do project in the area wing in aircraft...please give some sugestions or ideas in that

Meer, write drawback of linear array

write drawback of linear array

Seekers , Seekers There are two main types of sensor used in autono...

Seekers There are two main types of sensor used in autonomous vehicles (seekers and position/attitude sensors) - although not all systems have both. - Airc

Write Your Message!

Name

Email id

Message

Verfication Code

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd