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


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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
"Tire manufacturers have been working hard for 16 years to promote environmentally and economically sound solutions to reduce scrap tire waste," Michael Blumenthal, RMA senior technical director, says.
* Ground rubber--One of the largest markets for scrap tires is ground rubber, which consumed more than 30 million tires in 2005.
As electric are furnaces run at full capacity, less scrap is available, resulting in greater demand for the substitute materials Midrex makes.
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.
As part of that effort, each issue of Aerospace Manufacturing and Design will include an insert entitled Scrap Management that has been designed to help provide plant managers at scrap-generating facilities with valuable insight on maximizing scrap value and proper scrap handling methods.
Cumberland and Size Reduction Specialists offer new granulators with dust containment to reclaim medical molding scrap in clean rooms.
The next month, ferrous scrap shattered the $200 per ton ceiling, and the AMM No.
Depending on the nature of the scrap, it may be advisable to involve technical support staff from filter or metal treatment equipment suppliers.
In 1987, Randy took the plunge and purchased a piece of property in Pittsburgh so he could enter the scrap business full time.
Presenters at the Ferrous Roundtable at the ISRI Commodities Forum were predominantly bullish toward the future of steel demand and pricing, as well as demand and pricing for the ferrous scrap used to make steel.
Expanding markets now consume four out of live scrap tires, according to a report by the Rubber Manufacturers Association.