salvage value
TRANSCRIPT
The estimated value that the owner is paid when the
item is sold at the end of its useful life/The estimated
resale value of an asset at the end of its useful life.
Salvage value is not discounted to its present value.
Salvage value is also known as scrap value.
Salvage Value?
Suppose , a company purchases a delivery
car for $10,000 and estimates its useful life to
be five years. It uses the car for five years
and sells it to a used car lot for $1,500.
Here,($1,500) would be the Scrap or salvage
value.