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41. Salvage value is regarded as: Select one: a. costs. b. inflows c. savings.

41. Salvage value is regarded as: Select one: a. costs. b. inflows c. savings.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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### Question 41 Salvage value is regarded as: **Select one:** a. costs. b. inflows c. savings. --- **Explanation:** The salvage value, also known as the residual value, is the estimated value that an asset will realize upon its sale at the end of its useful life. It is an important factor in financial modeling and accounting, often used in the calculation of depreciation of a long-term asset. The correct answer is "b. inflows," as salvage value is considered an inflow of cash that the business will receive upon selling the asset after its useful life.
Transcribed Image Text:### Question 41 Salvage value is regarded as: **Select one:** a. costs. b. inflows c. savings. --- **Explanation:** The salvage value, also known as the residual value, is the estimated value that an asset will realize upon its sale at the end of its useful life. It is an important factor in financial modeling and accounting, often used in the calculation of depreciation of a long-term asset. The correct answer is "b. inflows," as salvage value is considered an inflow of cash that the business will receive upon selling the asset after its useful life.
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