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What is the difference between residual value, salvage value, and scrap value?

Residual value, salvage value and scrap value are three terms that refer to the expected value at the end of the useful life of the property, plant and equipment used in a business. This estimated amount is used in the calculation of an asset's depreciation expense, and often the amount is assumed to be zero.

The term residual value can also refer to the estimated value of a leased asset at the end of the lease term.