HOW TO REDUCE WASTAGE ON RESIDUALS
Residual value analysis is a comprehensive process aimed at determining the future value of equipment at specified times during the lease term and at expiration. The issue of residual value is very crucial in leasing. In operating lease for example, the lessor is more likely to rely upon the future value of the leased asset for its profit as the lessee’s ability to pay the lease rental. However, care must be taken in assessing the residual value. For instance,…