What Is Scrap Value?

abandonment value Abandonment value refers to the value of an abandoned asset (abandonedasset). If the expected useful life is reached, the remaining book value of the scrapped asset is usually equal to its cash salvage.
When an enterprise makes an asset disposal decision (abandonment decision) or an equipment replacement decision, the value of the old equipment's abandonment should generally be greater than the present value of the future cash flow of the equipment's remaining useful life.