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Planning horizon

This topic has 3 replies, 3 voices, and was last updated 1 year ago by John Moffat.

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January 22, 2021 at 5:50 am #607498
Noah098
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sir if FCFs for the firm initially grow at 6% say, in the first yr, then at 4% in second yr and third yr onwards to perpetuity FCFs are expected to grow at 2% then does that mean the planning horizon for the firm is till perpetuity?
January 22, 2021 at 9:15 am #607519
John Moffat
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Yes it does 🙂
June 16, 2023 at 8:25 am #687110
shadkay
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What is planning horizon
June 16, 2023 at 4:44 pm #687133
John Moffat
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The planning horizon is the period over which they decide to appraise the investment.
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