Revision 1 Advanced Investment Appraisal

4.1.2 Alternatively, if the free cash flows are growing at a constant rate every year, the value can be calculated using the Gordon Model (also known as the Constant Growth Model). Where: g = growth rate. ke = cost of capital. 4.3 Terminal values. The terminal value of a project is the . value of all the cash flows occurring from period N + 1 ... ................
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