To calculate the Horizon Value (HV):
\[ HV = \left( \frac{ACF}{RR - GR} \right) \]
Where:
A horizon value is the expected value of a security or investment at a future date.
Let's assume the following values:
Using the formula:
\[ HV = \left( \frac{10,000}{8 - 3} \right) = \$200,000 \]
The Horizon Value is $200,000.
Let's assume the following values:
Using the formula:
\[ HV = \left( \frac{15,000}{10 - 4} \right) = \$250,000 \]
The Horizon Value is $250,000.
