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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 ?
In reclaiming of scrap vulcanized rubber, the scrap is normally ground and is then treated with the application of heat, chemical peptizers and is then intensely worked mechanically to partially devulcanize (depolymerize) the rubber component.
Historically, scrap tires, tire parts and tire buffings have been the primary source of raw scrap rubber available for reclaiming.
It has been used to melt steel scrap commonly available in the U.
At the same time its RMDAS efforts have been gaining attention on the ferrous scrap and steelmaking side of the industry, ScrapSite has remained focused on serving as a host site for scrap metal online auctions.
Moderated by ISRI President Robin Wiener, the council will provide networking opportunities for the growing number of professional women in the scrap recycling industry Monday, April 26, at 9:30 a.