[tristan]

GUYS RELAX .. LETS HOPE FOR MAGICAL 50.. WHAT EVER WAS TO HAPPEN HAS HAPPENED

[tristan]

yeah but its not provided on the portion of industry. Its have been on market value of equity.

[tristan]

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.

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