Business Terms and Jargon Explained

What is Net Book Value

Is the cost of a fixed asset less depreciation. E.g., a computer cost 5000 one year ago and was depreciated by 1000 for the year. The net book value will be 4000. If the asset continues to be depreciated by 1000 each year then after four more years the net book value would be zero.

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Term created / updated 2005-07-16 23:12:15

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