Abandonment Value


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Abandonment Value

The value of an asset if it were sold immediately and all debts associated with it were repaid. That is, the abandonment value is what would be left over after an asset is sold and all the bills were paid. It is also called the liquidation value. See also: Market Price.
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References in periodicals archive ?
"Abandonment Values and Abandonment Decisions: A Clarification," Journal of Finance, 40: 1225-1228.
If the abandonment value is $110,000 in each case, the decisions are obvious: asset A should be abandoned; assets B and C should be retained.
Van Horne, "Abandonment Value and Capital Budgeting," Journal of Finance (December 1967), pp.
Long, "Abandonment Value and Capital Budgeting: Comment," Journal of Finance (March 1969), pp.