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Question

The cash flows and net salvage of Project X is given the following table:


Year Cash

Flow Salvage Value

0 -5800 4800

1 2100 3000

2 3400 2200

3 3600 1800

4 1800 0


Given the cost of capital is 12% , in what year should you abandon this project x?


(Please provide the equation to enter NPV to calculate in excel. How to incorporate Salvage value in NPV calc? )

Top Answer

Hi, we try to find the benefit as soon as present value of salvage value is more than... View the full answer

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