How do you determine the residual value at the end of project life?

The residual value at the end of a project's life is determined by estimating the asset's salvage value, which is the expected amount that can be recovered from the asset after its useful life. This can be based on market research, historical data, or depreciation methods. Additionally, factors such as the asset's condition, market demand, and potential for reuse or recycling should be considered. Ultimately, a thorough analysis of these elements helps arrive at a reasonable estimate of the residual value.