At the end of the useful life of a piece of equipment, the asset accounts for $45,000 worth of production and has an operating cost of $25,000. The equipment has a salvage value of $15,000. The net cash flow in the final year of use is:

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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At the end of the useful life of a piece of equipment, the asset accounts for $45,000 worth of
production and has an operating cost of $25,000. The equipment has a salvage value of $15,000.
The net cash flow in the final year of use is:
Select one:
a. $ 25000
b. - $8000
c. $ 15000
d. $ 35000
Transcribed Image Text:At the end of the useful life of a piece of equipment, the asset accounts for $45,000 worth of production and has an operating cost of $25,000. The equipment has a salvage value of $15,000. The net cash flow in the final year of use is: Select one: a. $ 25000 b. - $8000 c. $ 15000 d. $ 35000
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