terminal value

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November 7, 2014 at 2:01 pm #208235
student07
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Sir can u please tell me the formula for finding terminal value. Thanks
November 7, 2014 at 6:27 pm #208296
John Moffat
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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.
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