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 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 00.004 seconds)

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Basics of Financial Accounting Calculators

Depletion Charge per Unit
​ Go Depletion Charge per Unit = (Original Cost-Residual Value)/Total Number of Units Depletion
Shareholders' Equity given Share Capital, Retained Earnings and Treasury Shares
​ Go Total Shareholders' Equity = Share Capital+Retained Earnings-Treasury Shares
Discount Percentage
​ Go Discount Percentage = ((List Price-Price Paid)/Price Paid)*100
Shareholders' Equity given Total Assets and Liabilities
​ Go Total Shareholders' Equity = Total Assets-Total Liabilities

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 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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