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In estimating value of cash flows compounded future value is classified...

This question belongs to Commerce Financial Management
Financial Management
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In estimating value of cash flows, compounded future value is classified as its

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Correct Answer: Option A
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.
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