Definition Residual Value. Description.
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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Compare with:
Harvest Strategy |
Liquidation Value
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