Salvage value is treated as

 Salvage value is treated as:

multiple choice
a subtraction to net cash inflows at the beginning of the first year.
an addition to net cash inflows at the end of the final year. Correct
a subtraction to net cash inflows at the end of the final year.
an addition to net cash inflows at the beginning of the first year.

Explanation
Knowledge Check 01
 
Salvage is treated as an additional net cash inflow expected to be received at the end of the final year of the asset’s life.