The formula to calculate the Residual Value is:
Residual Value=(Cost of Fixed Asset−Scrap RateLifespan)
Where:
Residual value is a leasing method, which signifies the future value of an asset in terms of depreciation percentage of the asset's basic value.
Let's assume the following values:
Using the formula:
Residual Value=(450−10315569520)
Evaluating:
Residual Value=1.3943044943×10−6
The Residual Value is approximately 1.3943044943E-06.
Cost of Fixed Asset | Scrap Rate | Lifespan | Residual Value |
---|---|---|---|
400 | 5 | 315569520 | 0.0000012517 |
400 | 10 | 315569520 | 0.0000012359 |
400 | 15 | 315569520 | 0.0000012200 |
425 | 5 | 315569520 | 0.0000013309 |
425 | 10 | 315569520 | 0.0000013151 |
425 | 15 | 315569520 | 0.0000012992 |
450 | 5 | 315569520 | 0.0000014101 |
450 | 10 | 315569520 | 0.0000013943 |
450 | 15 | 315569520 | 0.0000013785 |
475 | 5 | 315569520 | 0.0000014894 |
475 | 10 | 315569520 | 0.0000014735 |
475 | 15 | 315569520 | 0.0000014577 |
500 | 5 | 315569520 | 0.0000015686 |
500 | 10 | 315569520 | 0.0000015527 |
500 | 15 | 315569520 | 0.0000015369 |