Cars · RATIOXA GLOSSARY
Residual value
Expected net proceeds from a later sale. It is an uncertain scenario assumption and central to depreciation.
Simple definition
Expected net proceeds from a later sale. It is an uncertain scenario assumption and central to depreciation.
Why it matters
This term changes how inputs, cash flows or results should be interpreted. RATIOXA keeps it explicit so two options are compared on the same basis.
Worked example
A €42,000 purchase price less €26,000 net sale proceeds gives €16,000 depreciation.