Residual Value Definition

Below please find a definition of “Residual Value”

Financial Analysis Training & Glossary TermsResidual Value: Residual value is used for determining the worth of a fixed asset at the end of its useful life. A very common example of residual value is determining what a leased car will be worth after three years. The bank that issues the lease determines the residual value of the car before the car is actually leased out.

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