Abandonment Value Law and Legal Definition

“Abandonment value” is the value of a project or asset if it were immediately liquidated. It is also referred to as the liquidation value. The abandonment value is what would be left over after an asset is sold and all the bills were paid. It is also called the liquidation value. 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.