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

The research about thermoset polymer products, Chemical Engineering The re...

Chemical Engineering The research about thermoset polymer products. For example Polyimide Film Thermosetting and Pressure-Sensitive Adhesive Tape.

Human Motion Kinetics, Beginning from rest when theta=10 degrees, a 30-kg c...

Beginning from rest when theta=10 degrees, a 30-kg child slides without kinetic friction down the slide which is in the shape of a 2.5 meter circular arc. Determine the child''s sp

ZENER DIOD, WHAT IS ZENER DIAOD?

WHAT IS ZENER DIAOD?

Aircraft engine, Explain Air temperature indicator

Explain Air temperature indicator

What features of our solar system, Expertsmind.com brings you unique solut...

Expertsmind.com brings you unique solution in physics What features of our solar system provide clues to how it formed? 1- Patterns of motions among large bodies: -

Time value money, I want to buy a car. The Msrp is $31,000. I pay $516 per ...

I want to buy a car. The Msrp is $31,000. I pay $516 per month for five years. The quoted apr is 6.9%. I put down $800. How much did I pay for the car?

Pysical chemistry , explain hydrogen bonding & impotents of it

explain hydrogen bonding & impotents of it

Pressure relief valve - aircraft engine, PRESSURE RELIEF VALVE The pres...

PRESSURE RELIEF VALVE The pressure relief valve shown in the figure. controls the oil pressure at the pre-set value demanded by the system. The valve is normally integral with

Networking engineering, I need 2 assignments on Monday.

I need 2 assignments on Monday.

Linear programming, Gandhi Textile company produces shirts and pants.The sh...

Gandhi Textile company produces shirts and pants.The shirts demands for the following two months are 10 and 12 units,whereas the demand for pants are 14 and 15.The capacity for fab

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