Certified Valuation Analyst (CVA) Practice Exam 2025 – Your All-in-One Guide to Exam Success!

Investment value refers to the specific worth an asset holds for a particular individual or entity, considering their individual circumstances or strategic objectives. This concept focuses on the preferences and needs of the buyer, which can differ from the general market perception of value. For instance, an investor may be willing to pay more for an asset if they believe it will provide them with unique benefits or synergies that others might not recognize or appreciate.

In the context of valuation, this contrasts with market value, which represents the price an asset would fetch in an open market between a willing buyer and seller, and does not account for individual circumstances. Liquidation value refers to the estimated sale price of an asset when it is sold in a forced sale scenario, often under duress, while fair value encompasses a broader framework that reflects the price at which the asset would trade under normal market conditions, considering principles such as marketability and liquidity, but still not tailored to specific individuals. Thus, investment value specifically emphasizes the unique worth to an individual, shaping it as the correct choice for this question.