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abandonment value | Startups | Dictionary




	

	

	

		
		
	




	

		

		

		
abandonment value

		

		

			
	

			Amount that would be yielded by discontinuing an investment scheme. The guiding rule for such decisions is that a project should be abandoned if its salvage or scrap value exceeds the net present value (NPV) of its expected cash flows.
			

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