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75 biplton

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

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June 5, 2017 at 8:42 am #390457
shilpamary
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in cash flows , why the terminal value is 6200 * 1.08 power to 5 and not to the power 6 ?as there are 6 period!
June 5, 2017 at 2:59 pm #390538
John Moffat
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Because it take one year to build. So the cost is payable in 1 years time and there are 5 years between then and 6 years time.
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