Explain terminal value calculation at end of forcast period, Financial Management

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Explain the terminal value calculation at the end of the forecast period. Why is it necessary?

The firm whose business operation is being valued isn't expected to suddenly cease operating at the end of the discrete forecasting period, other than to continue operating indefinitely into the future as a going concern. The terminal value computation estimates the values of the cash flows that occur in the year following the discrete forecasting period and beyond.

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