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Forecasting Residual Values

Forecasting Residual Values

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By Stephen Low
Winter 1984


Regulatory, legislative, economic and technological uncertainties often make the residual value forecaster's job seem more of an art then a science. However, while these uncertainties demand generous measures of experience, insight and good judgment, accuracy demands a systematic approach. This article discusses such an approach - an objective, five-step method which has been used successfully to derive residual values for a wide range of assets.