Residual Value

Disposition strategies often revolve around the discussion of residual value: what the access devices are worth at the end of their useful life for the business. Residual value needs to be viewed in the context of any expenses required to prepare the device for the disposal action.

In many instances, residual value is likened to a roller coaster ride. For businesses, it is desirable to dispose of an asst before the momentum of the “roller coaster” drives the residual value down. Also, continuing with this analogy, the speed of the loss of residual value is exponential.