- This topic has 1 reply, 2 voices, and was last updated 11 months ago by
John Moffat.
John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)
-
Posts
-
alia99
- Topics: 7
- Replies: 2
- ☆
what is terminal value? how is it calculated? (i see no mention of it in BPP)
The views of the directors of Pelta Co are that all investment projects must be evaluated over four years of operations, with an assumed terminal value at the end of the fourth year of 5% of the initial investment cost.
PELTA CO S/D 2017
Thanks in advance
John Moffat
- Topics: 57
- Replies: 49921
- ☆☆☆☆☆
Terminal means final, so here is simply means that the project has a scrap/sale value at the end of the four years of 5% x $25m.
alia99
John MoffatViewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.