hard20 pts · first answer countsbusiness-caseresidual-valuecash-flow-modelling

An asset that outlives the model

Your case models 5 years, but the new building management system will keep working for 10. What should you do about years 6 to 10?

A.Ignore them, since the model only covers 5 yearsB.Add 5 more years of full benefits with no discountingC.Add a realistic residual value at year 5 and explain itD.Double the year 5 benefit to cover them

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An asset that outlives the model

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