capital budgeting

It won't deductible as cash outflow mate, it will be a net cash inflow at the end of 10 years( the salvage value after deducting taxes). 

Since after 10 years you get an inflow of the amount mentioned as salvage value and you pay taxes, which is a cash outflow, so the net figure is considered as an inflow at the end of 10 years. 

It will be taken as cash inflow at the end of 5th year. If there is any outflow also in the 5th year then we take outflow net of inflow.

Regards, CA Shakuntala Chhangani

Sorry I meant 5 years instead of 10 in my post. Got confused

what is more important is that u have guts to give answer.