(v5175.00) Value Growth Duration Perpetuity Value

Similar to the Perpetuity Residual Value, except that you can forecast growth in the cash flows (profits) for years beyond the original forecast period. You may select this method from Shareholder Value Model Options and input assumptions for years of growth and percentage of growth in profits throughout that period. Use this method to forecast for several years although you believe that your opportunity to earn beyond your cost of capital (the value growth duration) is greater than the selected time frame. Thus, you may forecast growth in the Taxable Operating Profit beyond your forecast period, making up the rest of your assumed value growth duration.