Understanding the resale value of assets is crucial for several reasons:
Cost Management: Businesses can manage costs more effectively by investing in assets that depreciate slowly, ensuring better financial planning. Cash Flow: Selling assets with higher resale value can generate substantial cash flow, which is vital for operations and expansion. Investment Decisions: Knowing the potential resale value helps in making informed investment decisions, facilitating strategic planning. Asset Utilization: High resale value encourages efficient utilization of assets, optimizing productivity and reducing wastage.