net book value

Definition

The net value of an asset. Equal to its original cost (its book value) minus depreciation and amortization. also called net book value and depreciated cost.

Use net book value in a sentence

The net book value of the asset was lower than the true value of the asset as it had been maintained impeccably.

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The net book value of it was decent enough that it was still considered a valuable asset, so our firm was loathe to sell it off too cheaply.

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The $100 of depreciation taken in years 1-3 was taken from the gross cost of the asset of $1,000 to arrive at net book value at the end of year 3 of $900.

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net benefit to leverage factor written-down value