If the Asset Is Depreciated Completely Before the End of the Life

question 1

Multiple Choice

If the asset is depreciated completely before the end of the life of the project,what happens to the salvage value?

• A) The salvage value is ignored in the capital budget.
• B) The salvage value is amortized further.
• C) The after-tax salvage value is discounted at the date of the disposal of the asset.
• D) The asset's life is extended.

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