I don’t understand this question. Do sales and OpEx continue for 8 years or is it still the 5 years? If it is 5 years, isnt there a tax advantage for selling less than the book value? I’m trying to do the Cash Flow schedule like the CFA text in Excel but I can’t come up with the answer they have. Their answer just looks at the effects of the depreciation and additional 100k to the investment outlay. Thanks, Ben
It’d be helpful if you posted the question and/or gave specific book and pg #…
In The CFA Text Corporate Finance book reading 28 Question 2 pg 73