MD.Tuhin Parves

ID:B3160B005

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.

But what if……..?

Thank You!