Examples of Terminal Value in a sentence
The model calculates the FVLCD as the present value of the projected free cash flows and the Terminal Value of each GCGU.
Unit II Long-term investment decision: Capital Budgeting - Nature and meaning of capital budgeting; Cash flows and Accounting profits; Evaluation techniques - Accounting Rate of Return, Pay Back, Net Present Value, Internal Rate of Return, Terminal Value, Profitably Index Method.
A Terminal Value Growth Rate of 2% –3% was used (for all goodwill impairment tests) reflecting terminal growth rate expectation of long-term growth in energy infrastructure investment; this figure also reflects the Company’s best estimate of the economic conditions that are expected to exist over the forecast period.
The Paid-Up Terminal Value is calculated as (Total Premiums Paid / Total Premiums payable over the Premium Payment Term) x Terminal Value, where: • Terminal Value = Base Sum Assured x (5% + 1.2% x (Maturity Age – 60))• Maturity Age is the Age of the Life Assured at Date of Maturity.
Terminal Value: Terminal Value is estimated to depend on a terminal growth rate of 0.5%, representing an increase in the sale of Microwave Vision systems and consumables.