Residual Values: Depreciation Curves and the Value at Lease End
This lesson is part of the course
In this lesson
You project the value of a new aircraft year by year on a straight-line and on a declining curve, read the value at lease end and measure how much of the lessor's inflows depend on that residual value.
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Lessons in this course
- The Lease Rate Factor: Monthly Rent as a Share of Value Locked
- Utilisation: Flight Hours, Cycles and the Hour-to-Cycle Ratio Locked
- Maintenance Reserves: Rates per Flight Hour, Cycle and Month Locked
- Reserve Draws: Paying Shop Visits from the Reserve Accounts Locked
- Return Conditions: Half-Life and Compensation in Both Directions Locked
- Residual Values: Depreciation Curves and the Value at Lease End Locked
- Lessor Returns: IRR and NPV, Sale-and-Leaseback vs Direct Order Locked
- Portfolio View: Lessee Concentration, Remaining Term and Age Locked