Here we look at making mid year adjustments But our terminal value in this case, we'll use the exit multiple method. Not the growing perpetuity method Here we've got a timeline And out timeline has five free cash flows on and they're all at the mid year point because cash flows occur evenly throughout the period We assume the average point for a cash flow happens at the mid year We also notice that the discount factors underneath have one over one plus WACC to the 0.5, the 1.5, the 2.5 The tricky part comes trying to decide when the terminal value appears Should it appear at year 4.5 or at year 5? Well the terminal value calculation using an exit multiple Assumes that the company is valued on the basis of last 12 months EBITDA at the end of the forecast period The multiple occurs at the end of the period So here's our EBITDA appearing, last 12 months EBITDA for year 5 But the multiple appears at the end of the period If the multiple appears at the end i.e. at year 5, then the terminal value is at year 5 as well So when I come to discount just that number, just the terminal value figure We need to use a discount factor of one over one plus WACC to the power of five Now do be careful, this is just the terminal value It is not the terminal value using the growing perpetuity method