Kim will not be able to sell the asset because it will have


Question - NPV: No salvage value or taxes

Kim Johnson purchased an asset for $80000. Annual operating cash inflows are expected to be $30000 each year for four years. At the end of the asset life, Kim will not be able to sell the asset because it will have no salvage value.

Required - What is the net present value if the cost of capital is 12 per cent (ignore income taxes)?

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Accounting Basics: Kim will not be able to sell the asset because it will have
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