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

Compressibility fluid -aircraft maintenance, Compressibility Fluid: Com...

Compressibility Fluid: Compressible fluid flow refers to the air flow through a gas turbine engine and, because the air is compressible, flow at subsonic speeds causes a change

Electronics devices and circuits, With the help of circuit diagram and the ...

With the help of circuit diagram and the waveforms,explain the working of a negative clipper with positive biasing voltage.also explain the Same concept in series clipper circuit

Analog electronics, what are sampling gates ?

what are sampling gates ?

Methods of forging, Q. Describe briefly the following methods of forging : ...

Q. Describe briefly the following methods of forging : (i) Drop forging (ii) press forging Ans. (i) Drop Forging: It is also called die

Aircraft maintenance, compression of gas turbine

compression of gas turbine

Mechanical engineering how it works , i''m doing a project and need to kno...

i''m doing a project and need to know from start how engineering is structure? like a tree starting from its root

Dc motor.., what is a domain

what is a domain

Types of engine, TYPES OF ENGINE: The internal combustion engines for the ...

TYPES OF ENGINE: The internal combustion engines for the automotive use may be classified according to the following considerations: Engine cycle Number of strokes F

Ubiquitous networks, Ubiquitous network applications are generally designed...

Ubiquitous network applications are generally designed for a whole network. This notion should be reflected in the way a network is programmed. We believe that providing abstractio

Summing amplifier, Summing amplifier: As the title implies, this is an ...

Summing amplifier: As the title implies, this is an adding device. The circuit can take any number of voltage inputs, and the output voltage is simply the sum of these inputs.

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