Forum Replies Created
Viewing 3 posts - 1 through 3 (of 3 total)
- Posts
yeah but its not provided on the portion of industry. Its have been on market value of equity.
Well terminal value is:
For example you have a project that cost you investment in period of 3 years
For year 1: (15,000)
For year 2: (10.000)
For year 3: ( 5,000)Which can be invested at 10% or cost of capital is 10% either way. Now if i dont invest in year 1, the capital of 15,000 it will be available for 3 years, the investment of 2 years will be available for 2 years and investment of 3 year is available for 1 years. Therefore
Terminal Value =15,000(1+0.10)^3+10,000(1+0.10)^2+5000(1+0.10)^1
The 11ish is applicable where funds will be available for investment at end of the that year.
Viewing 3 posts - 1 through 3 (of 3 total)