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

Resolving power and rayleigh criterion of resolution, Q. Explain Rayleigh c...

Q. Explain Rayleigh criterion of resolution. What is meant by resolving power of grating? Ans. Resolving Power (i) Meaning of Resolution : The resolving power of

Electronics Engineering - Digital Circuits, can you help with assignment on...

can you help with assignment on above topic

Falling weight impact testing , Drop-weight impact towers are frequently us...

Drop-weight impact towers are frequently used to generate low velocity impact damage. Typically, the falling mass will be instrumented, containing a load-cell for measuring the lo

Matrices for risk analysis, Matrices for risk analysis: NFPA 551 descr...

Matrices for risk analysis: NFPA 551 describes a technique of using matrices for risk analysis. Such matrices are quite commonly used in the UK for assessing risk but, fortun

Trading , how to find the net profit of given data

how to find the net profit of given data

Estimate the total annual particulate matter, A concrete block manufacturer...

A concrete block manufacturer operates a natural gas-fired furnace-type curing kiln (rated at 20 Mbtu/hr) and consumes 820, 000, 000 cubic meters of fuel annually. Being similar t

Risk assement in power system, can we minimize the risk ?

can we minimize the risk ?

Classification of plastic, Q. Discuss the classifications of plastics. ...

Q. Discuss the classifications of plastics. OR Discuss the general properties and classification of plastics.

Found ash content, determine the ash content in given sample

determine the ash content in given sample

Zero-coupon bond, Zero-Coupon Bond is a type of bond gives no periodic inte...

Zero-Coupon Bond is a type of bond gives no periodic interest payments, instead is sold at a steep discount from its face value. Due to these bonds these do not pay interest until

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