How do you determine the residual value


Task: Conduct a sensitivity analysis on the following "what if" scenarios:

Q1. What happens if the country you have chosen has provided incentives to invest? Now that your company has started to become profitable, the country is taking the incentives back. How do you determine the residual value at the end of the project life?

Q2. How is the value of an organization determined from the following perspectives:

i. Expiration of project life
ii. Friendly or unfriendly buyout
iii. Economic decisions to change locations
iv. Nationalization or confiscation of organization

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Finance Basics: How do you determine the residual value
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