## **Understanding Asset Residual Value: A Practical Guide to Long-Term Investment Planning**
When you buy equipment, vehicles, or lease property, one critical question always emerges: what will this asset be worth when I'm done using it? That's where residual value comes in. Also known as salvage value, residual value represents the estimated worth of an asset after it has completed its useful life or at the end of a lease term. Understanding this concept is essential for anyone managing portfolios, making purchasing decisions, or planning tax strategies.
### **Why Residual Value Matters in R
When you buy equipment, vehicles, or lease property, one critical question always emerges: what will this asset be worth when I'm done using it? That's where residual value comes in. Also known as salvage value, residual value represents the estimated worth of an asset after it has completed its useful life or at the end of a lease term. Understanding this concept is essential for anyone managing portfolios, making purchasing decisions, or planning tax strategies.
### **Why Residual Value Matters in R