Hypothetical manager; present values, $ millions
Illustrative onlyPresent value, $ millions
Terminal period: 61% of base value, and 64% of the loss (author's calculation).
Totals are computed from unrounded components, so rounded parts may differ by 0.01.
Illustrative only. Hypothetical manager from the worked illustration: a 14% discount rate and 2.5% growth applied to assumed cash flows. Concentrated hotel sales reduce enterprise value from $12.12 million to $9.97 million; about two thirds of that reduction falls in the terminal period (author's calculation: $1.39 million of $2.16 million). Figures are not market benchmarks.
| Item | Forecast years 1 to 5 | Terminal period | Total |
|---|---|---|---|
| Base case enterprise value | 4.72 | 7.41 | 12.12 |
| Loss in the forecast years | −0.77 | −0.77 | |
| Loss in the terminal period | −1.39 | −1.39 | |
| Downside enterprise value | 3.95 | 6.02 | 9.97 |