Net book value is the value of an asset on financial statements, calculated as the original cost minus accumulated depreciation. As assets age and depreciate, their book value decreases, reflecting consumption of their useful life. For example, a fire truck purchased for $500,000 with $300,000 accumulated depreciation has a net book value of $200,000. Net book value appears on municipal balance sheets representing capital assets' remaining accounting value. However, book value may differ significantly from market value or replacement cost. Understanding net book value helps in financial reporting, asset management decisions, and assessing infrastructure investment needs as assets approach zero book value requiring replacement.