discounted cash flow rate to Scrap value

MelissaH

do you apply the discounted cash flow rates to the scrap value if this is given to you as a figure ie, the scrap value is expected to be £5k in year 5. do you then apply the NPV in year 5 to this scrap value?

SandyHood

A very clear question.
Yes discount the scrap value at the appropriate discount rate for year it will be scrapped.

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