Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/288612 
Year of Publication: 
2020
Citation: 
[Journal:] Annals of Operations Research [ISSN:] 1572-9338 [Volume:] 313 [Issue:] 2 [Publisher:] Springer US [Place:] New York, NY [Year:] 2020 [Pages:] 877-897
Publisher: 
Springer US, New York, NY
Abstract: 
We extend risk-value models for valuing streams of risky cash flows by establishing the well-known concept of terminal value in this context. For a constant growth assumption we are able to derive upper and lower bounds for the terminal value in the case of a translation-invariant and in the case of a position-invariant risk measure. For both cases we also obtain an exact formula under a special growth assumption for the future cash flows. Furthermore, we provide results on the applicability of the general findings for the case that the log-return of the risky investment follows a Brownian motion.
Subjects: 
New approach
Business valuation
Project valuation
Terminal value
Risk measure
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article
Document Version: 
Published Version

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