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Residual Value

In accounting, an estimate of the value of an asset at the end of its depreciation. For example, a firm's computer depreciates each year. When it breaks down or becomes obsolete, it has a residual value; it is calculated by the best guess of the net cash inflow when it is sold at the end of its life. It will never be above the blue book value.

In price regulated industries, the residual value may be a negative value because it includes the net cash outflow in removing the asset from where it was used. For example, nuclear energy plants must store the nuclear waste at the end of their useful life. This cost is a contributing factor in the residual value. It is also called the salvage value or scrap value. See also: Absolute Physical Life, Obsolescence.


seriously defective or damaged components or products that are rejected by a firm's QUALITY CONTROL system as incapable of being rectified and which have to be disposed of for the salvage value of their materials.
References in periodicals archive ?
Radioactive, or "hot" scrap has been an issue of concern for ferrous foundries for years, and it shows no signs of cooling.
Gary directs nonferrous sales, Craig oversees sales of ferrous scrap and Kevin directs physical processing operations.
In addition to running within Aerospace Manufacturing and Design, the Scrap Management publication will also run four times within the pages of Today's Medical Developments.
Ground rubber--One of the largest markets for scrap tires is ground rubber, which consumed more than 30 million tires in 2005.
The markets for ferrous scrap should hold up fairly well throughout the next several quarters, according to speakers at the ISRI event.
Patented warm-feed system predensifies, size reduces and prewarms scrap before it enters the extruder.
On the contrary, ISRI considers the current situation as simply a point in a highly-cyclical scrap market that will revolve with time, and no controls need to be enforced.
In 1987, Randy took the plunge and purchased a piece of property in Pittsburgh so he could enter the scrap business full time.
Tire manufacturers have been working hard for 16 years to promote environmentally and economically sound solutions to reduce scrap tire waste," said Michael Blumenthal, RMA senior technical director.
Cumberland and Size Reduction Specialists offer new granulators with dust containment to reclaim medical molding scrap in clean rooms.