Net realisable Value vs Market Price

What’s the difference between the two? To me they are the same… no?

They are related in the sense that the Market price cannot be:

a) higher than NRV


b) lower than NRV minus Profit Margin.

If your NRV is $10 and the Profit would be $2 then:

  1. If Market is $6 you have to go with $8 because that is your lower boundary ($10-$2=$8)

  2. If Market is $15, you have to go with $10, which is your upper boundary.

  3. If Market is $9.21, you can go with that.

Someone asked the same question a while ago (it might have been me):

Also, keep in mind that the term market refers to the replacement cost.

So in this context, both are used interchangably.