Which of the following is included in the terminal cash flow?
A)The expected salvage value of the asset
B)Tax impacts from selling asset
C)Recapture of any working capital
D)All of the above

Question

Quizplus · Accepted Answer

The terminal cash flow includes all of the above-mentioned factors. The expected salvage value of the asset is the amount that the company expects to receive at the end of its useful life, and it represents a cash inflow. Tax impacts from selling the asset and recapture of any working capital both represent cash flows that occur at the end of the investment's life and are therefore included in the terminal cash flow.

Which of the Following Is Included in the Terminal Cash