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

Specific air range & specific endurance , Specific Air Range & Specific End...

Specific Air Range & Specific Endurance  Key cruise parameters are Range (distance flown) and Endurance (time of flight). It is important to be able to relate these to the amou

Matlab assignment, can you formulate a program using only bubblesort for as...

can you formulate a program using only bubblesort for assigning grades in an array?

Carrer, i want to do aeronautics engg. but my height is only five feet . so...

i want to do aeronautics engg. but my height is only five feet . so can i go in aeronautics

Discuss the heuristic search as applied to an and/or graph, Question 1 Wha...

Question 1 What is Artificial Intelligence? Discuss the two class of approaches followed for AI Question 2 Discuss the heuristic search as applied to an AND/OR Graph Ques

Frequency warping, main difference between warping and without warping

main difference between warping and without warping

Function, what is function independence.on software engineering

what is function independence.on software engineering

Thermo, what is the answer for 2+2=?

what is the answer for 2+2=?

Plastic processing methods , Q. Write short note on following :    ...

Q. Write short note on following :             (i) Compression moulding of plastics.             (ii) Injection moulding of plastics.

Write Your Message!

Captcha
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!

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