Differential cash flow approach if P&D is closed Evaluation period Particulars 1 Pension to two employees 2 Salary to two specialized staff 3 Savings in managers salary 4 Staff retrenchment allowance 5 Sale of inventory 6 Material cost saved 7 Depreciation 8 Sale of machinery 9 Opportunity revenue from sale of vehicle 10 Allocated general overheads 11 Rent revenue 12 Savings in warehouse rent 13 Savings in other operating expenses 14 Contract payment Total cash outflow (inflow)
Total cost approach under both alternatives
Evaluation period P&D department Particulars 1 Salary and pension cost 2 Salary to two specialized staff 3 Managers salary 4 Salary and retrenchment allowance 5 Sale of inventory 6 Material cost saved 7 Depreciation 8 Sale of machinery 9 Opportunity revenue from sale of vehicle 10 Allocated general overheads 11 Rent revenue 12 Warehouse rent - rental Warehouse rent - savings 13 Other operating expenses 14 Contract payment Total cash outflow (inflow) Amount