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Residual value is the future value of a good after depreciation of its initial value. For example you bought a car for $20,000. After two years and 60,000 of mileage it will value of $10,000.

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What of these describes the term residual value?

Residual value refers to the estimated worth of an asset at the end of its useful life or lease term. It is the amount expected to be recovered after depreciation has been accounted for, often used in leasing agreements and financial projections. Accurately determining the residual value is crucial for calculating lease payments and assessing the long-term financial implications of an asset.


What is the primary factor that may cause the residual value of?

The primary factor that may cause the residual value of an asset to fluctuate is market demand. Changes in consumer preferences, technological advancements, or economic conditions can significantly impact how much buyers are willing to pay for a used asset. Additionally, the asset's condition and maintenance history also play crucial roles in determining its residual value.


What is the primary factor that may the cause the residual value of a leases?

The primary factor that may affect the residual value of a lease is the expected market value of the asset at the end of the lease term. This is influenced by factors such as the asset's depreciation rate, condition, technological advancements, and market demand. Additionally, economic conditions and changes in consumer preferences can also impact residual values significantly. Accurate forecasting of these elements is crucial for both lessors and lessees to assess lease agreements effectively.


Whats the definition of residual versus mass poverty in developed versus less developed countries?

it is a situation in which a large section of people in economy are deprived of the basic necessities


In the definition of GDP the words total market value refer to total?

dollar value at current prices