Residual Value

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What is Residual Value? Meaning.

Residual Value is the estimated salvage value or trade-in value of a tangible asset or of an entire firm at the end of the period being considered. This can either be the resale value of the asset on the market or the remaining value of the asset after depreciation.

The term is often used as one of the constituents in (car) lease contracts. Also called Salvage Value, Disposal Value or Terminal Value.

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