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abandonment value

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Financial Dictionary

Abandonment Value

The value of a project or asset if it were immediately liquidated. Also referred to as the liquidation value.

Investopedia Commentary

The abandonment value is generally a cash value, or equivalent, associated with an asset. This value is important for companies when analyzing the profitability of particular projects or assets and deciding whether they should be maintained.

See also: Abandonment, Abandonment Option, Book Value, Liquidation

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