Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16Q: What is the definition of present value?
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Question
What is horizon value?
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Horizon value is the value of the project or the security at the end of a specified future date. The horizon value can also be named as the terminal value. It is the value of the project based on the perpetual cash flows. In simple words, the terminal value is the project value base on the precise cash flow projections.
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