Residual Value Solution

STEP 0: Pre-Calculation Summary
Formula Used
Residual Value = (Cost of fixed asset-Scrap Rate)/Lifespan
RV = (C-SR)/LS
This formula uses 4 Variables
Variables Used
Residual Value - 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.
Cost of fixed asset - Cost of fixed asset is the cost of assets and property that cannot easily be converted into cash.
Scrap Rate - Scrap rate is the percentage of failed assemblies or material that cannot be repaired or restored and is therefore condemned and discarded.
Lifespan - (Measured in Second) - Lifespan is the estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.
STEP 1: Convert Input(s) to Base Unit
Cost of fixed asset: 450 --> No Conversion Required
Scrap Rate: 10 --> No Conversion Required
Lifespan: 10 Year --> 315569520 Second (Check conversion here)
STEP 2: Evaluate Formula
Substituting Input Values in Formula
RV = (C-SR)/LS --> (450-10)/315569520
Evaluating ... ...
RV = 1.3943044942997E-06
STEP 3: Convert Result to Output's Unit
1.3943044942997E-06 --> No Conversion Required
FINAL ANSWER
1.3943044942997E-06 1.4E-6 <-- Residual Value
(Calculation completed in 00.007 seconds)

Credits

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23 Financial Accounting Calculators

DuPont Analysis
Go Return on Equity = (Net Income/Revenue)*(Revenue/Average Total Assets)*(Average Total Assets/Average Total Equity)
Internal Rate of Return
Go Net Present Value (NPV) = sum(x,0,Number of Periods,((Cashflow at End Period/(1+Internal Rate of Return)^x)))-Initial Investment
Discount Lost
Go Discount Lost = (Discount in Percentage/(100-Discount in Percentage))*(365/(Final Payment Date-Last Discount Date))
Net Operating Cycle
Go Net Operating Cycle = ((365/Purchases)*Average Inventory)+((365/Net Receivables)*Average Accounts Receivables)
Annual Equivalent Cost
Go Annual Equivalent Cost = (Asset Price*Discount Rate)/(1-(1+Discount Rate)^-Number of Periods)
Net Present Value
Go Net Present Value (NPV) = sum(x,1,Time period,(Cash Flow/(1+Internal Rate of Return)^x))
Annual Percentage Yield
Go Annual Percentage Yield = (1+(Stated annual interest rate/Compounding Periods))^Compounding Periods-1
Effective Yield
Go Effective Yield = 1+(Nominal Rate/Number of Payments Per Year)^(Number of Payments Per Year)-1
Depletion Charge per Unit
Go Depletion Charge per Unit = (Original Cost-Residual Value)/Total Number of Units Depletion
Value of Stock
Go Value of Stock = Expected Dividend Per Share/(Cost of Capital Equity-Dividend Growth Rate)
EBITDA
Go EBITDA = Earnings Before Interest and Taxes+Depreciation+Amortization
Shareholders' Equity given Share Capital, Retained Earnings and Treasury Shares
Go Total Shareholders' Equity = Share Capital+Retained Earnings-Treasury Shares
Operating Cash Flow
Go Operating Cash Flow = Earnings Before Interest and Taxes+Depreciation-Taxes
Discount Percentage
Go Discount Percentage = ((List Price-Price Paid)/Price Paid)*100
Residual Value
Go Residual Value = (Cost of fixed asset-Scrap Rate)/Lifespan
Long term Debt to Equity ratio
Go Long Term Debt to Equity Ratio = Long Term Debt/Shareholders Fund
EBIT
Go Earnings Before Interest and Taxes = Revenue-Operating Expense
Depletion Expense
Go Depletion Expense = Depletion Charge per Unit*Units Consumed
Shareholders' Equity given Total Assets and Liabilities
Go Total Shareholders' Equity = Total Assets-Total Liabilities
Discount Factor
Go Discount Factor = 1/(1*(1+Discount Rate)^Number of Periods)
Discount given Discount Rate and List Price
Go Discount = Discount Rate*List Price
Discount given List Price and Price Paid
Go Discount = List Price-Price Paid
List Price
Go List Price = Price Paid+Discount

Residual Value Formula

Residual Value = (Cost of fixed asset-Scrap Rate)/Lifespan
RV = (C-SR)/LS

How to Calculate Residual Value?

Residual Value calculator uses Residual Value = (Cost of fixed asset-Scrap Rate)/Lifespan to calculate the Residual Value, 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. Residual Value is denoted by RV symbol.

How to calculate Residual Value using this online calculator? To use this online calculator for Residual Value, enter Cost of fixed asset (C), Scrap Rate (SR) & Lifespan (LS) and hit the calculate button. Here is how the Residual Value calculation can be explained with given input values -> 1.4E-6 = (450-10)/315569520.

FAQ

What is Residual Value?
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 and is represented as RV = (C-SR)/LS or Residual Value = (Cost of fixed asset-Scrap Rate)/Lifespan. Cost of fixed asset is the cost of assets and property that cannot easily be converted into cash, Scrap rate is the percentage of failed assemblies or material that cannot be repaired or restored and is therefore condemned and discarded & Lifespan is the estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.
How to calculate Residual Value?
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 is calculated using Residual Value = (Cost of fixed asset-Scrap Rate)/Lifespan. To calculate Residual Value, you need Cost of fixed asset (C), Scrap Rate (SR) & Lifespan (LS). With our tool, you need to enter the respective value for Cost of fixed asset, Scrap Rate & Lifespan and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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