income forecasting

On the basis of the analysis of money circulation, the cost and cost of products (services) consist of predicted models that take into account the volume of production and sales of products (services) in the next 5 ... 10 years, determine the magnitude of annual profits of the enterprise.
Determination of the cost of an object for this technique is carried out by the formula:

where: MV - market value of the estimated complex
REV - Expected "Reversion Cost";
i - serial number of the year from the date of assessment;
CFi - the expected cash flow of the i-year, according to the composite forecast;
Y - discount rate;
S - duration of the forecasting period in years.
Under the "reverse cost" means a monetary amount equal to the value of the object being valued for the investor at the end of the forecast period