One of the most important tasks for the equipment manager is the analysis and calculation of equipment residual values. There are no magic formulas or short cuts and there are many variables that can affect the ultimate forecast on any high tech asset. There are a variety of variables that can affect the residual value and the marketability of high tech assets. Discounting practices, transferability of the software, bundling of the maintenance into the cost of the equipment, and the inclusion of any financing of soft costs in the lease payments may determine if the leasing company made a good investment or bad investment. At DMC we try and analyze the marketplace for each asset we review based on the conditions above. These reports are used as the backbone in the forecasting module for our reports. In addition to these values we then factor in any new enhancements since the asset was introduced, upgrades that are available, annual hours of usage, new model announcements, new chip technologies and many other factors to finalize the forecasts.