The residual value corresponds to the value of an asset at the end of its useful life or lease term. This indicator is used by companies to determine the value of their equipment when it has been depreciated. This value is therefore equivalent to the acquisition cost less depreciation over the useful life of the asset.

This video will show you all the ins and outs. Listen carefully and at the end, a button will be displayed allowing you to access the entire exercise you will have to do.

After the exercise, you will have to watch the video that gives both the solution of the exercise, a worksheet with solution and additional information needed.

You can then proceed to view Step 4.3 on Working Capital Requirements.

Enjoy your viewing!