Salvage value

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Salvage value is the estimated value of an asset at the end of its useful life.

For other meanings of the term Terminal value, see the Terminal value disambiguation page.

In accounting, the salvage value of an asset is its remaining value after depreciation. This is also known as residual value or scrap value. It is the net cash inflow that occurs when the asset is liquefied at the end of its life. Salvage value can be negative if the residual asset requires special treatment to terminate—for example, used nuclear materials. Salvage value depends upon varius conditions or factors say:- -type of industry -type of goods -type of usage -kind of situation or circuminstance at that time of evaluation