Home » Financial management » In estimating value of cash flows, compounded future value is classified as its

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

April 15, 2024 by rawan239

terminal value

existed value

quit value

relative value

The correct answer is: A. terminal value.

Terminal value is the value

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of an asset or a business at the end of a period of time. It is calculated by taking the present value of all future cash flows and discounting them back to the present using a discount rate.

The other options are incorrect because:

Option B, existed value, is not a term used in finance.
Option C, quit value, is the value of an asset or a business that is being sold.
Option D, relative value, is a measure of the value of an asset or a business relative to other assets or businesses.

I hope this helps!

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