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What is Net Salvage Value?

Definition of Net Salvage Value

In accounting terms, the Net Salvage Value is the value of an asset at the end of its depreciation. It is determined by taking away the costs of disposal from the estimated after-tax sale. For example, a technology company's computers depreciate in value every year, until they have reached their maximum depreciated value (typically after they break or become sufficiently obsolete); at which point its Net Salvage Value is its basic residual value.
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