salvage value

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Salvage value

Scrap value of plant and equipment.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

salvage value

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

salvage value

see SCRAP.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

salvage value

The estimated value a property will have at the end of its useful life. (1) It is an important consideration when demolishing a structure in order to build a new one.Especially with older buildings,architectural components such as molding,trim,doors and hardware,windows,and even antique brick can command a very high price.(2) It was important at one time for income tax depreciation,but there is now a different system in place,the modified cost recovery system,which does not rely upon establishing a salvage value.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.

Salvage Value

The estimated value that will be realized upon the sale or other disposition of an asset at the end of its useful life.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
References in periodicals archive ?
IOU expects the nuclear plant to have no salvage value at the end of its useful life.
The over stock at the retailer is buyback at salvage value [b.sub.r] per unit item.
The consumers at the retailer require high quality; therefore any leftovers are sold to a secondary market at a salvage value. Hence we assume retailer makes single period decisions.
When MNC holds an option of abandonment and the project is completely irreversible, which indicates that the project has no salvage value, then two optimal investment thresholds in two cases are the same regardless of the abandonment option.
Conversely, a third-party professional with no great expertise in specifically the business he is managing through a court order is inherently incentivised to shut it down and appropriate the hidden salvage value. In that view of the matter, a law that automatically hands over failing businesses to strangers does not encourage entrepreneurs to 'Make in India'; it promotes a culture of 'junk and sack-off in India'.
Even if a term may be implied with respect to ownership of waste or chattels with no more than scrap or salvage value, it does not follow that the same tenu should be implied for chattels of substantial value.
"Salvage value would be low since things like blast furnaces are not moveable and much of the equipment is old anyway."
While the cargo itself needed to be destroyed, the loss triggered several issues, including the public trust/duty to uphold the law, issues of taxation (alcohol taxes are paid up front and may be recoverable if proper poof of destruction can be presented), as well as the salvage value of the cans as scrap.
The contract in which the company was to demolish three World War II era hangars, has now increased the scope of work and together with the salvage value of the recycled materials, it expects its revenue on this project to be the mentioned amount, it added.
With the increased scope of work, together with the salvage value of the recycled materials, CES expects its revenue to approach USD1.2 million on this project.