Abandonment Value

Description of Abandonment Value. Explanation.

Definition Abandonment Value. Description.

Abandonment Value is the amount which could be recovered from an investment project if it were immediately to be abandoned. A rule of thumb is that a project should be abandoned if its abandonment value exceeds the net present value of its projected cash flows.

Also referred to as the Liquidation Value.

Compare also: Exit Strategy  |  Turnaround Management

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End of description Abandonment Value. An explanation.