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

Uses of iodoform, what is the role of iodoform in chemistry?

what is the role of iodoform in chemistry?

Water chemistry, distinguish between priming and foaming

distinguish between priming and foaming

Blow hole and pin hole porosity, Difference between   Blow hole and pin hol...

Difference between   Blow hole and pin hole porosity          Blow hole : They appear as cavities in a casting. When they are visible on the upper surface of the castings, th

Architectural graphics, How to draw schiography in a perspective view of an...

How to draw schiography in a perspective view of an object

Phase array modelling, QUESTION: Modelling of phase array antenna for medic...

QUESTION: Modelling of phase array antenna for medical imaging. INSTRUCTION: The expert must provide a correct mathematical model solution and detail by detail steps of how it can

Ewing’s molecular theory of magnetism, Ewing’s molecular theory of magnetis...

Ewing’s molecular theory of magnetism   Every molecule of a magnetic substance behaves as a tiny magnet called molecular magnet. In an unmagnetized state the molecular m

Power system analysis, I need a project in Load impact in power flow((const...

I need a project in Load impact in power flow((constant power, constant impedance, constant current, induction motor). Report from 3 articles source and simulation in powerworld s

Iron crabon, iron crabon diagram with reactions

iron crabon diagram with reactions

Case analysis, Construct the pro forma cash flow statements for Bloomington...

Construct the pro forma cash flow statements for Bloomington Clinics for five years into the future using the data given in the case plus the most likely growth estimates. a. Wha

Electrical engineering, how to get guidance of projects in electrical engin...

how to get guidance of projects in electrical engineering?

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