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Financial Management: Lessons Learned About Evaluation of Federal Asset Sale Proposals

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Report Type Reports and Testimonies
Report Date Sept. 26, 1989
Report No. T-RCED-89-70
Subject
Summary:

GAO discussed important considerations regarding the evaluation of federal asset sale proposals. GAO found that the government should: (1) generally receive fair market value when it sells, exchanges, or leases assets; (2) account for the timing of payments it will receive and the tax implications of a proposed sale in calculating fiscal implications; (3) compare the government's expected value from selling an asset with its expected value from retaining it; and (4) perform sensitivity analyses because of inherent uncertainty in estimating future cash flows that serve as the basis for asset valuation.

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