What is the cash flow resulting from disposal of the equipment at the end of 2 years?

The cash flow resulting from disposal of the equipment at the end of two years can be calculated by subtracting any associated costs such as legal fees, advertising costs or transportation expenses. The remaining amount is then compared to the original purchase cost in order to determine whether a profit or loss has been made on this transaction.

For example, if the original purchase cost was $50,000 and all associated costs total $5,000, then after selling the equipment for $60,000 there would be a net gain of $5,000 ($60,000 – $55,000). This can also be expressed as a percentage return on investment (ROI) which in this case would be 10% (($5,000/$50,00)*100). This calculation may help inform future decision-making when it comes to purchasing and disposing of similar assets.

In addition to calculating ROI it is important to consider other factors such as market conditions which could affect how much money an asset could fetch when sold. It is also necessary to factor in any applicable taxes that may apply; for instance with regard to capital gains tax which may need to be paid depending on individual circumstances. Ultimately understanding potential cash flows from asset disposal can help inform sound financial decisions that ensure long-term profitability.