Estimated Recovery Value

There are a number of processes in which the estimated value of an asset can be recovered with an ease. These processes are the event of liquidation of the asset or the event of winding down the asset. The estimated recovery value of an asset can be calculated as recovery rate time of the asset and its comparison with the book value of the asset. There are a number of estimated recovery values of the asset that depends upon the type and the kind of the asset. There are a numberThere are a number of processes in which the estimated value of an asset can be recovered with an ease. These processes are the event of liquidation of the asset or the event of winding down the asset. The estimated recovery value of an asset can be calculated as recovery rate time of the asset and its comparison with the book value of the asset. There are a number of estimated recovery values of the asset that depends upon the type and the kind of the asset. There are a number of assets the recovery rate of which is hundred percent. The example of this kind of asset includes cash. However there are certain assets the estimated recovery of those assets is only 50 percent such as goods or inventories or the third party advances. In a liquidation situation, the calculation of the sum of estimated recovery values for all assets minus the administrative expenses for legal and trustee fees symbolizes the net profits offered to creditors.   of assets the recovery rate of which is hundred percent. The example of this kind of asset includes cash. However there are certain assets the estimated recovery of those assets is only 50 percent such as goods or inventories or the third party advances. In a liquidation situation, the calculation of the sum of estimated recovery values for all assets minus the administrative expenses for legal and trustee fees symbolizes the net profits offered to creditors.