terminal value


Definitions (2)

1.Value of an asset at the end of its useful life. The current or present value of an asset is the terminal value discounted at its cost of capital (interest). See also residual value and salvage value.
2.Value of an investment at the end of the investment period computed at a specified rate of interest over that period. Its computation formula is the same as that for compound interest.

Use terminal value in a sentence

  • We needed to know the terminal value of the item before we ended its run, because if we were not making profit, it would be pointless.

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  • You need to know if your equipment has any terminal value and salvage what you can from it when the time comes.

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  • You may be able to get a good deal on some resources by knowing their terminal value and getting them at that time.

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