The value of the venture at the end of the explicit forecast period is called the:
A)going-concern value
B)net present value
C)terminal value
D)reversion value

Question

Quizplus · Accepted Answer

The value of the venture at the end of the explicit forecast period is called the terminal value. This value represents the total value of the business beyond the forecast period and includes the present value of all future cash flows. It is an important component of the discounted cash flow analysis, which is used to determine the overall value of a business. Options A, B, and D are not accurate descriptions of this concept.

The Value of the Venture at the End of the Explicit