We talked earlier about how a piece of equipment or a facility doesn’t last forever. Just like you would sell your old car before buying a new one, the hospital sells its old equipment before its buys replacements. The money made from the sale of old equipment is called the Salvage Value. The salvage value is revenue for the hospital, but since you only sell equipment once, you can only add the salvage value to you revenue total once. The money the hospital anticipates selling the equipment for should be added to the revenue total for the last year of the project.