Book Value

Posted in Finance, Accounting and Economics Terms, Total Reads: 1068
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Definition: Book Value

Book Value is the value of an entity which is used for accounting purposes and it is this value at which the asset is recorded on the balance sheet. Also abbreviated as NPV (Net Present Value), it is the value which the investors get when the company gets liquidated.


Formula:

NPV = Cost of an Asset – Depreciation


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