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guachapori
Contributor

Joined: 06 Feb 2006
Online Status: Offline
Posts: 84

Posted: 20 Feb 2010 at 22:30 \| IP Logged

Don't you PV the salvage value?

EAK5455
Regular
Regular

Joined: 08 Jan 2010
Location: United States
Online Status: Offline
Posts: 107

Posted: 21 Feb 2010 at 09:47 \| IP Logged

If the salvage value is in reference to a replaced piece of property, then that salvage value does effect the initial investment outlay used in
the payback method. If the salvage value is in reference to the terminal value of the new property, then it is not considered in the payback
method.

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