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Planning horizon

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Planning horizon

  • This topic has 3 replies, 3 voices, and was last updated 2 years ago by AvatarJohn Moffat.
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  • January 22, 2021 at 5:50 am #607498
    AvatarNoah098
    Member
    • Topics: 935
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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
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
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    Yes it does 🙂

    June 16, 2023 at 8:25 am #687110
    Avatarshadkay
    Participant
    • Topics: 1
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    • ☆

    What is planning horizon

    June 16, 2023 at 4:44 pm #687133
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54843
    • ☆☆☆☆☆

    The planning horizon is the period over which they decide to appraise the investment.

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