Microsoft PowerPoint Presentation

11/19/97

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Table of Contents

Net Investment Outlay at t = 0 (000s)

Net Terminal Cash Flow at t = 4 (000s)

What if you terminate a project before the asset is fully depreciated?

Project S with Replication:

Equivalent Annual Annuity(EAA) Approach

EAA Calculator Solution

Types of Abandonment

Author: Vickie Bajtelsmit