The residual value, also known as salvage value, is the estimated value of a fixed asset at the end of its lease term or useful life. In lease situations, the lessor uses the residual val… See more

Residual value formulas differ across industries, but its general meaning—what … See more

There are two components to calculating residual value: estimated salvage value and the cost of asset disposal. The net proceeds received by the disposition less the cost of … See more

If you leasea car for three years, its residual value is how much it is worth after three years. The residual value is determined by the bank that issues the lease, and it is based on p… See more