Question: what is the difference between net book value and residual value?
Answer: Residual value is the estimated value of the asset you are buying at the end of it's life or lease term. ... Net book value is today's value for the asset after depreciating it from the day you bought it. For example, if you bought an iPhone for $1,000 on Jan 2019 with a residual value of $300 in 5 years.