posted on 06-06-2019

Liquidation Value

Updated October 1, 2019

What it is:

Liquidation value refers to the value of a project or investment if it were to be sold or abandoned immediately.

How it works/Example:

Also called abandonment value, the liquidation value of a project or investment is the immediate value in cash that would be generated from liquidating a project or selling an investment.

Why it matters:

A project's liquidation value can be an important consideration for a company's capital budget. Should the company learn that a project is not profitable and never will be, it can be beneficial to liquidate the project if the net present value of future cash flows is less than the liquidation value.

5 Credit Cards That Will Pay You Hundreds Just For Signing Up (2019)

by Christian Hudspeth What's even better than earning rewards for spending on your credit cards? Getting paid hundreds of dollars worth in sign-up bonuses in three months or sooner -- just for tr...

The Top 4 Balance Transfer Credit Cards for 2019

by Christian Hudspeth Tired of dragging credit card debt around with you? Taking 15 minutes to transfer your debt to a credit card with generous balance transfer perks could save you thousands in...

The 5 Best Rewards Credit Cards for 2019

by Christian Hudspeth If you're going to spend money anyway, then why not get paid for it?Whether you're looking for credit cards with up to 6% cash back, double flight miles, or even a free hote...

How a CD Ladder Strategy Can Boost Your Income as Interest Rates Rise

by Christian HudspethIn times where interest rates are on the rise, you may start hearing financial advisors and bankers sing the praises of an income strategy called "CD laddering" (short for ce...

Should You Sell Your Own Home or Use a Realtor?

by Susan Campbell Those of us familiar with selling property know real estate agents don't come cheap. With real estate agent commission and fees amounting to as much as 6% of the sel...

6 Secrets to Saving Money On Your Balance Transfer Credit Card

Beverly Harzog is a nationally recognized credit card expert, author, and consumer advocate. She blogs about credit cards at BeverlyHarzog.com. Being in credit card debt is the pits. I've bee...

The 4 Worst Home Refinancing Mistakes People Make (and How to Avoid Them!)

by Christian Hudspeth If you haven't already felt the pressure to refinance your mortgage, you're probably really feeling it now. Mortgage rates are still hovering near historic lows. But ...

Closing on a Mortgage? This Sneaky Lender Trick Could Cost You Thousands

by Christian Hudspeth If you or someone you know is thinking about getting a home mortgage, you may want to know about the thousands of dollars in hidden charges that some lenders are quietly...

Money Market vs Savings: Which Account is Best for You?

by Christian Hudspeth Money market accounts (MMAs) and savings accounts make great places to set aside your emergency fund money and earn some interest income at the same time.Simply put, these s...

4 Situations When a Personal Loan is a Good Idea

by Christian Hudspeth It's true that auto loans and home loans offer attractively-low annual percentage rates (APRs), while credit cards offer borrowing power without the risk of ever seeing the ...

5 Things to Know Before Opening a CD

by Christian HudspethWant to keep your emergency fund safe while earning interest yields that are three to five times higher than a typical savings account? Putting your money into an FDIC-insure...

The Best Way to Start Investing When You're Young

by Christian Hudspeth Question: Hi there. I need your advice. I'm only 19 and I really need to start investing. Where can I start? -- Tirelo M., Gaborone, Botswana Answer: You've defini...

Submitted by Anonymous on Thu, 06/06/2019 - 07:17

Liquidation Value

What it is:

How it works/Example:

Why it matters:

Related Terms