Examveda
Examveda

In estimating value of cash flows, compounded future value is classified as its

A. terminal value

B. existed value

C. quit value

D. relative value

Answer: Option A

Solution(By Examveda Team)

In estimating value of cash flows, compounded future value is classified as its terminal value. Terminal value (TV), or horizon value, determines the value of a business or project beyond the forecast period when future cash flows can be estimated.

This Question Belongs to Commerce >> Financial Management

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