Investment Language 101 Series: TERM OF THE DAY: -- 'Residual Value' | E.13 | Trading Candle Cheat Sheet Incl. Each Episode.

in #money7 years ago (edited)


A series designed to help all the new people flooding into & entering Crypto/Investments daily who get thrown into the rabbit hole so to speak and everything is new to them.

It is a TLDR / Short Form Series, covering ONLY one thing each episode in blue collar, easy to understand language to give a SHORT OVERVIEW of the term or lesson of the day.

It is specifically designed this way to keep it short and simple.

People can then search out extra info if they wish.

I've never seen a regular series or resource running on Steemit to continually address this basic need so I decided to do it.


TERM OF THE DAY:


What is....

Residual Value?

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The residual value of a fixed asset is an estimate of how much it will be worth at the end of its lease, or at the end of its useful life. The lessor uses residual value as one of its primary methods for determining how much the lessee pays in lease payments. As a general rule, the longer the useful life or lease period of an asset, the lower its residual value.

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Breaking Down...

'Residual Value'

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If you lease a car for three years, its residual value is how much it is worth after three years.

The residual value is determined by the bank that issues the lease before the lease begins. It is based on past models and future predictions. Along with interest rate and tax, residual value is an important factor in determining the car's monthly lease payments. In capital budgeting projects, residual values reflect how much you can sell the asset for after the firm has finished using it or once the asset-generated cash flows can no longer be accurately forecast.

Uses of Residual Value

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An example for a business owner would be if his desk had a useful life of seven years. How much the desk is worth at the end of seven years (its fair market value as determined by agreement or appraisal) is its residual value, also known as salvage value. To manage asset-value risk, companies that have numerous expensive fixed assets, such as machine tools, vehicles or medical equipment, may purchase residual value insurance to guarantee the value of properly maintained assets at the ends of their useful lives.


Trading Candle Cheat Sheet:

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Further Reading/Source/Resources


Friend of the People -- Enemy of the State.

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I am leaving these images I made here until I figure out one that fits properly and looks right for the first/main image for the post/series.

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Since Steemit dev's changed the size of the picture frame that shows, it has honestly been a real problem getting images to match the screen, it was perfectly fine months ago before they messed around with it.

SMH.


Thanks for reading, have a nice day.


PixaBay has tons of free pictures for us all to use!!!
Super Easy/Fast Picture Edits / Resizing at: http://www.picresize.com/ and also https://www298.lunapic.com/editor/







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Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
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