The salvage value of an old lathe is zero.If instead,the salvage value of the old lathe was $20,000,what would be the impact on the net present value of the proposal to purchase a new lathe?
A) It would increase the net present value of the proposal.
B) It would decrease the net present value of the proposal.
C) It would not affect the net present value of the proposal.
D) Potentially it could increase or decrease the net present value of the new lathe.
Correct Answer:
Verified
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