Week 7 Discussion – The Impact of Disposal or Residual Values in the Capital Expenditure Investment Analysis
In Chapter 10 on pages 369 and 370: Capital Investment Analysis – Measures and Methods; the text discusses several of the key aspects of capital expenditure analysis that a management team must consider when performing their strategic plan analysis and the potential capital expenditures required to support the plan’s execution. The concept of “residual or disposal value” is an important factor to consider when completing an analysis. For our discussion this week, please develop your own viewpoint on whether residual or salvage values should be included in the analysis and if so, do they distort the final outcome of the capital expenditure analysis?
Due 12/09/15 WED BY 5PM
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