What does abandonment value mean?

abandonment value meaning in Law Dictionary

the quantity made if a good investment is stopped. The typical guideline because of this scenario is the fact that if amount received for scrap or salvage is more compared to web present value (NPV) the project is abandoned.

abandonment value meaning in Business Dictionary

quantity that might be yielded by discontinuing an investment scheme. The leading rule for these types of decisions usually a project ought to be abandoned if its salvage or scrap price exceeds the internet present price (NPV) of their expected cash flows.