In vanilla Fallout 3, an item at zero health had no value (even if it could be scavanged for parts), at 50% health it was worth 35% of its base value, and at 100% its full base value, corresponding to the formula:
This mod changes the way condition impacts the value of an inventory item, such as a weapon or an armor, so that the condition has a smaller influence on the value of an inventory item.
