What are the terminal cash flows from the sale of the asset at the end of 5 years?

The terminal cash flow from the sale of an asset at the end of 5 years can be calculated by subtracting any related costs and expenses from the total expected proceeds. The total expected proceeds are typically calculated by estimating the current fair market value of the asset assuming it is sold in the same condition as it was purchased. This amount may include any applicable taxes, fees, or other charges associated with selling such an asset. Additionally, other related costs and expenses to consider would include but not limited to: depreciation (if any), cost of repairs or upgrades made to increase its sellability, broker commissions/fees, legal fees incurred during sale process, advertising expense (if used) etc.

Assuming all these costs have been taken into consideration then the final terminal cash flow figure at the end of 5 years will be equal to
the difference between total expected proceeds and related costs/expenses. This should provide your business with a clear understanding of how much revenue you can expect from this particular asset when sold off at that point in time which will provide you with an accurate basis for planning future investments and budgeting purposes.