Skip to content
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA AFM

terminal value

Sstudent0711y ago
Sir can u please tell me the formula for finding terminal value. Thanks
John MoffatJohn MoffatTutor11y ago#1
To get the terminal value, you 'add' interest each year by multiplying the flow by (1+r)^n where r is the rate of interest, and n is the number of year from the time of the flow to the end of the project.
Sign in to reply to this topic.