The value,as at the date of the final cash flow promised in a financial contract,that is equivalent to the stream of promised cash flows is the:
A)present value of a contract.
B)future value of a contract.
C)terminal value of a contract.
D)discounted value of a contract.

Question

Quizplus · Accepted Answer

The value, as at the date of the final cash flow promised in a financial contract, that is equivalent to the stream of promised cash flows is known as the terminal value of a contract. This represents the cash flows that will be received at the end of the contract period and it is usually used to estimate the total value of a project or an investment. Terminal value is calculated using various methods based on the type of contract or investment, and it is an important metric for financial analysis and decision making. Options A, B, and D are incorrect because they do not specifically refer to the value at the end of the contract period.

The Value,as at the Date of the Final Cash Flow