terminal value definition

terminal value

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.

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.

terminal value is in the Accounting & Auditing subject.

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