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When considering a potential capital investment, you determine that the investment will likely have a salvage value at the end of its 15-year life. Thus, in your PW analysis of this investment, you should include the salvage value as a(n)

When considering a potential capital investment, you determine that the investment will likely have a salvage value at the end of its 15-year life. Thus, in your PW analysis of this investment, you should include the salvage value as a(n)

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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When considering a potential capital investment, you determine that the investment will likely have a salvage value at the end of its 15-year life. Thus, in your PW analysis of this investment, you should include the salvage value as a(n) O cost of capital. O initial cost. cash inflow. cash outflow.
Transcribed Image Text:When considering a potential capital investment, you determine that the investment will likely have a salvage value at the end of its 15-year life. Thus, in your PW analysis of this investment, you should include the salvage value as a(n) O cost of capital. O initial cost. cash inflow. cash outflow.
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