The value of an asset at the start of a time period (i.e., stocks at the start of a trading session or real estate upon appraisal).
Hans wanted to impress his neighborhood crush, Gertrude, who liked German cars. So he went to visit a buddy who sold knock-off merchandise like "Lewis Vuittoon" bags and "Tug Hewer" watches and bought a BMV (similar to a BMW but with minor logo tweaks) for $2,000 (its beginning market value).
Turns out Gertrude is more of a Volkswagen fan, so Hans returned the car the next day, receiving its ending market value of $500 (because of depreciation), which then becomes the next day's beginning market value.
Related or Semi-related Video
Finance: What is terminal value?0 Views
finance a la shmoop what is terminal value and no it's not the value of a [Grave stones with for sale signs on]
dead person nor of a disease that kills you um terminally nor is it what gate 17
be at LaGuardia would sell for on eBay nope terminal value is the end value of [Stop signs appearing]
something and in our little fancy finance world here
it applies usually to a stream of cash flows and then that company is sold at [Two men looking at a screen showing stock prices]
the end for some terminal value sperm bank of America is storing progeny for [The words 'illustrative example time' fall out of a piggy bank]
the future on a cash flow basis it will break even for five years and at the end
of that time period it will sell for an orgasmically wonderful price of 1 [The bank moves to the end of the timeline and a sold sign appears]
million dollars that million dollars is its terminal or end value and it can be [Pile of cash]
discounted back for time and risk to present value dollars and if you care
about all that we have opuses on the subject all over shmoop and hopefully this
won't be you by the time you've finished watching them all that's [Grave stone of 'Sally Shmooper']
terminal value terminal what things are worth at the end
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