Unformatted text preview: Note: Often the investment will generate a cost savings. This can be entered in place of (S - C) because it is the positive cash flow generated by the investment. An expense reduction is just as good as an increase in revenue. III. Terminal Value (CF T ) (Added to last operating cash flow when entering into calculator) + A. Salvage Value of Assets + B. Tax Effect on Salvage Value (Capital Gain or Loss) X (-t) (Salvage Value ≠ Book Value) + C. Recoup Working Capital Note: Capital Gain/Loss = Selling Price - Book Value...
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This note was uploaded on 07/09/2011 for the course MK MK 640 taught by Professor Dr.lee during the Spring '11 term at Jefferson College.
- Spring '11