Terminal Value and Cash Build-up
Question - If I am running a 15 year buy and hold scenario on a project, so no terminal value / multiple, would I pay out the cash build-up the project creates at exit or would I just assume that cash is recycled in the business and invested in other projects?
Obv. when I run economics with a TV the payment at exit includes that cash build-up and pays off any associated debt for the net cash on a distribution.
Any insight would be appreciated. I think I could argue it either way, but curious for y'alls thoughts.