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PROPERTY, PLANT AND EQUIPMENT (Tables)
 12 Months Ended
Dec. 31, 2018
Property, plant and equipment [abstract]  
Disclosure of Power Generating Assets [Table Text Block]
Key assumptions on contracted generation and future power pricing are summarized below:
 
Total Generation Contracted under Power Purchase Agreements
 
Power Prices from Long-Term Power Purchase Agreements
(weighted average)
 
Estimates of Future Electricity Prices
(weighted average)
AS AT DEC. 31, 2018
(MILLIONS)
1 – 10 years
 
11 – 20 years
 
1 – 10 years
 
11 – 20 years
 
1 – 10 years
 
11 – 20 years
North America (prices in US$/MWh)
44
%
 
21
%
 
93

 
95

 
62

 
114

Brazil (prices in R$/MWh)
69
%
 
35
%
 
286

 
397

 
287

 
452

Colombia (prices in COP$/MWh)
22
%
 
—
%
 
201,000

 
—

 
252,000

 
354,000

Europe (prices in €/MWh)
72
%
 
25
%
 
93

 
111

 
79

 
92
Disclosure of detailed information about property, plant and equipment
The company’s property, plant and equipment relates to the operating segments as shown below:
 
Renewable
Power (a)
 
Infrastructure (b)
 
Real Estate (c)
 
Private Equity
and Other (d)
 
Total
AS AT DEC. 31
(MILLIONS)
2018

 
2017

 
2018

 
2017

 
2018

 
2017

 
2018

 
2017

 
2018

 
2017

Costs
$
26,108

 
$
24,991

 
$
12,059

 
$
9,253

 
$
7,713

 
$
5,854

 
$
9,027

 
$
4,050

 
$
54,907

 
$
44,148

Accumulated fair value changes
18,260

 
13,280

 
3,480

 
3,272

 
1,045

 
798

 
(434
)
 
(231
)
 
22,351

 
17,119

Accumulated depreciation
(5,497
)
 
(4,681
)
 
(1,889
)
 
(1,622
)
 
(1,106
)
 
(873
)
 
(1,472
)
 
(1,086
)
 
(9,964
)
 
(8,262
)
Total
$
38,871

 
$
33,590

 
$
13,650

 
$
10,903

 
$
7,652

 
$
5,779

 
$
7,121

 
$
2,733

 
$
67,294

 
$
53,005


1.
Includes amounts reclassified to held for sale.
The following table presents our renewable power property, plant and equipment measured at fair value by geography:
AS AT DEC. 31
(MILLIONS)
2018

 
2017

North America
$
24,274

 
$
22,832

Colombia
6,665

 
5,401

Europe
3,748

 
1,088

Brazil
3,505

 
3,443

Other1
679

 
826

 
$
38,871

 
$
33,590

1.
Other refers primarily to China, India, Chile and Uruguay in 2018 and South Africa, China, India, Malaysia and Thailand in 2017.
 
Cost
 
Accumulated Fair Value Changes
 
Accumulated Depreciation
 
Total
AS AT AND FOR THE YEARS ENDED DEC. 31
(MILLIONS)
2018

 
2017

 
2018

 
2017

 
2018

 
2017

 
2018

 
2017

Balance, beginning of year
$
5,854

 
$
5,783

 
$
798

 
$
694

 
$
(873
)
 
$
(825
)
 
$
5,779

 
$
5,652

Additions/(dispositions)1, net of assets reclassified as held for sale
352

 
(502
)
 
5

 
44

 
43

 
246

 
400

 
(212
)
Acquisitions through business combinations
1,748

 
281

 
—

 
—

 
—

 
—

 
1,748

 
281

Foreign currency translation
(241
)
 
292

 
(3
)
 
1

 
27

 
(13
)
 
(217
)
 
280

Fair value changes
—

 
—

 
245

 
59

 
—

 
—

 
245

 
59

Depreciation expenses
—

 
—

 
—

 
—

 
(303
)
 
(281
)
 
(303
)
 
(281
)
Balance, end of year
$
7,713

 
$
5,854

 
$
1,045

 
$
798

 
$
(1,106
)
 
$
(873
)
 
$
7,652

 
$
5,779

1.
For accumulated depreciation, (additions)/dispositions.
Our infrastructure property, plant and equipment consists of the following:
 
Utilities
 
Transport
 
Energy
 
Data Infrastructure
 
Sustainable Resources
 
Total
AS AT AND FOR THE YEARS ENDED DEC. 31
(MILLIONS)
2018

 
2017

 
2018

 
2017

 
2018

 
2017

 
2018

 
2017

 
2018

 
2017

 
2018

 
2017

Cost, beginning of year
$
3,473

 
$
2,894

 
$
2,655

 
$
2,361

 
$
2,630

 
$
2,382

 
$
—

 
$
—

 
$
495

 
$
408

 
$
9,253

 
$
8,045

Additions, net of disposals and assets reclassified as held for sale
422

 
350

 
73

 
103

 
146

 
81

 
4

 
—

 
(2
)
 
93

 
643

 
627

Acquisitions through business combinations
394

 
—

 
—

 
—

 
2,111

 
100

 
440

 
—

 
—

 
—

 
2,945

 
100

Foreign currency translation
(269
)
 
229

 
(243
)
 
191

 
(206
)
 
67

 
—

 
—

 
(64
)
 
(6
)
 
(782
)
 
481

Cost, end of year
4,020

 
3,473

 
2,485

 
2,655

 
4,681

 
2,630

 
444

 
—

 
429

 
495

 
12,059

 
9,253

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated fair value changes, beginning of year
1,256

 
1,044

 
873

 
782

 
629

 
351

 
—

 
—

 
514

 
513

 
3,272

 
2,690

Fair value changes
218

 
136

 
18

 
24

 
224

 
257

 
—

 
—

 
12

 
13

 
472

 
430

Foreign currency translation
(73
)
 
76

 
(81
)
 
67

 
(31
)
 
21

 
—

 
—

 
(79
)
 
(12
)
 
(264
)
 
152

Accumulated fair value changes, end of year
1,401

 
1,256

 
810

 
873

 
822

 
629

 
—

 
—

 
447

 
514

 
3,480

 
3,272

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated depreciation, beginning of year
(509
)
 
(384
)
 
(687
)
 
(517
)
 
(383
)
 
(258
)
 
—

 
—

 
(43
)
 
(31
)
 
(1,622
)
 
(1,190
)
Depreciation expenses
(148
)
 
(113
)
 
(147
)
 
(147
)
 
(134
)
 
(117
)
 
—

 
—

 
(8
)
 
(10
)
 
(437
)
 
(387
)
Dispositions and assets reclassified as held for sale
5

 
16

 
22

 
22

 
7

 
4

 
—

 
—

 
4

 
3

 
38

 
45

Foreign currency translation
39

 
(28
)
 
68

 
(45
)
 
18

 
(12
)
 
—

 
—

 
7

 
(5
)
 
132

 
(90
)
Accumulated depreciation, end of year
(613
)
 
(509
)
 
(744
)
 
(687
)
 
(492
)
 
(383
)
 
—

 
—

 
(40
)
 
(43
)
 
(1,889
)
 
(1,622
)
Balance, end of year
$
4,808

 
$
4,220

 
$
2,551

 
$
2,841

 
$
5,011

 
$
2,876

 
$
444

 
$
—

 
$
836

 
$
966

 
$
13,650

 
$
10,903

Our renewable power property, plant and equipment consists of the following:
 
Hydroelectric
 
Wind1
 
Solar and Other
 
Total
AS AT AND FOR THE YEARS ENDED DEC. 31
(MILLIONS)
2018

 
2017

 
2018

 
2017

 
2018

 
2017

 
2018

 
2017

Cost, beginning of year
$
14,667

 
$
14,382

 
$
7,622

 
$
3,285

 
$
2,702

 
$
364

 
$
24,991

 
$
18,031

Additions, net of disposals and assets reclassified as held for sale
189

 
256

 
(21
)
 
(273
)
 
(684
)
 
—

 
(516
)
 
(17
)
Acquisitions through business combinations
—

 
—

 
1,184

 
4,585

 
1,784

 
2,338

 
2,968

 
6,923

Foreign currency translation
(988
)
 
29

 
(209
)
 
25

 
(138
)
 
—

 
(1,335
)
 
54

Cost, end of year
13,868

 
14,667

 
8,576

 
7,622

 
3,664

 
2,702

 
26,108

 
24,991

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated fair value changes, beginning of year
12,176

 
11,440

 
1,053

 
807

 
51

 
51

 
13,280

 
12,298

Fair value changes
3,688

 
341

 
1,221

 
33

 
702

 
—

 
5,611

 
374

Dispositions and assets reclassified as held for sale
—

 
(8
)
 
—

 
—

 
—

 
—

 
—

 
(8
)
Foreign currency translation
(448
)
 
403

 
(195
)
 
213

 
12

 
—

 
(631
)
 
616

Accumulated fair value changes, end of year
15,416

 
12,176

 
2,079

 
1,053

 
765

 
51

 
18,260

 
13,280

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated depreciation, beginning of year
(3,564
)
 
(2,947
)
 
(1,008
)
 
(740
)
 
(109
)
 
(89
)
 
(4,681
)
 
(3,776
)
Depreciation expenses
(547
)
 
(579
)
 
(416
)
 
(267
)
 
(192
)
 
(20
)
 
(1,155
)
 
(866
)
Dispositions and assets reclassified as held for sale
5

 
—

 
6

 
51

 
35

 
—

 
46

 
51

Foreign currency translation
227

 
(38
)
 
60

 
(52
)
 
6

 
—

 
293

 
(90
)
Accumulated depreciation, end of year
(3,879
)
 
(3,564
)
 
(1,358
)
 
(1,008
)
 
(260
)
 
(109
)
 
(5,497
)
 
(4,681
)
Balance, end of year
$
25,405

 
$
23,279

 
$
9,297

 
$
7,667

 
$
4,169

 
$
2,644

 
$
38,871

 
$
33,590

The following table presents the changes to the carrying value of the company’s property, plant and equipment assets included in these operations:
 
Cost
 
Accumulated Impairment
 
Accumulated Depreciation
 
Total
AS AT AND FOR THE YEARS ENDED DEC. 31
(MILLIONS)
2018

 
2017

 
2018

 
2017

 
2018

 
2017

 
2018

 
2017

Balance, beginning of year
$
4,050

 
$
5,268

 
$
(231
)
 
$
(243
)
 
$
(1,086
)
 
$
(1,429
)
 
$
2,733

 
$
3,596

Additions/(dispositions)1, net of assets reclassified as held for sale
360

 
(1,966
)
 
1

 
36

 
72

 
752

 
433

 
(1,178
)
Acquisitions through business combinations
4,915

 
501

 
—

 
—

 
—

 
—

 
4,915

 
501

Foreign currency translation
(298
)
 
247

 
15

 
(16
)
 
78

 
(51
)
 
(205
)
 
180

Depreciation expenses
—

 
—

 
—

 
—

 
(536
)
 
(358
)
 
(536
)
 
(358
)
Impairment charges
—

 
—

 
(219
)
 
(8
)
 
—

 
—

 
(219
)
 
(8
)
Balance, end of year
$
9,027

 
$
4,050

 
$
(434
)
 
$
(231
)
 
$
(1,472
)
 
$
(1,086
)
 
$
7,121

 
$
2,733

1.
For accumulated depreciation, (additions)/dispositions.
Disclosure of significant unobservable inputs used in fair value measurement of assets [text block]
The following table summarizes the valuation techniques and significant unobservable inputs used in the fair value measurement of Level 3 financial instruments:
(MILLIONS)
Type of Asset/Liability
 
Carrying Value
Dec. 31, 2018

 
Valuation
Techniques
 
Significant
Unobservable Inputs
 
Relationship of Unobservable
Inputs to Fair Value
Fixed income securities and other
 
$
490

 
Discounted cash flows
 
•  Future cash flows

 
•  Increases (decreases) in future cash flows increase (decrease) fair value
 
 
 
 
 
 
•  Discount rate

 
•  Increases (decreases) in discount rate decrease (increase) fair value

Common shares (common shares and warrants)
 
222

 
Black-Scholes model
 
•  Volatility







 
•  Increases (decreases) in volatility increase (decreases) fair value
 
 
 
 
 
 
•  Term to maturity

 
•  Increases (decreases) in term to maturity increase (decrease) fair value
 
 
 
 
 
 
•  Risk free interest rate

 
•  Increases (decreases) in the risk-free interest rate increase (decrease) fair value

Limited-life funds (subsidiary equity obligations)
 
(1,640
)
 
Discounted cash flows
 
•  Future cash flows
 
•  Increases (decreases) in future cash flows increase (decrease) fair value
 
 
 
 
 
 
•  Discount rate
 
•  Increases (decreases) in discount rate decrease (increase) fair value

 
 
 
 
 
 
•  Terminal capitalization rate
 
•  Increases (decreases) in terminal capitalization rate decrease (increase) fair value
 
 
 
 
 
 
•  Investment horizon
 
•  Increases (decreases) in the investment horizon decrease (increase) fair value
Derivative assets/Derivative liabilities (accounts receivable/payable)
 
79
/
  
Discounted cash flows
  
•  Future cash flows

  
•  Increases (decreases) in future cash flows increase (decrease) fair value
 
(659
)
 
 
 
 
 
 
 
•  Forward exchange rates (from observable forward exchange rates at the end of the reporting period)
 
•  Increases (decreases) in the forward exchange rate increase (decrease) fair value
 
 
 
 
 
 
•  Discount rate
 
•  Increases (decreases) in discount rate decrease (increase) fair value
The significant unobservable inputs (Level 3) included in the discounted cash flow models used when determining the fair value of standing timber and agricultural assets include:
Valuation Techniques
 
Significant Unobservable Inputs
 
Relationship of Unobservable Inputs to Fair Value
 
Mitigating Factors
Discounted cash flow analysis
 
•    Future cash flows
 
•    Increases (decreases) in future cash flows increase (decrease) fair value

 
•    Increases (decreases) in cash flows tend to be accompanied by increases (decreases) in discount rates that may offset changes in fair value from cash flows


 
 
•    Timber / agricultural prices

 
•    Increases (decreases) in price increase (decrease) fair value

 
•    Increases (decreases) in price tend to be accompanied by increases (decreases) in discount rates that may offset changes in fair value from price

 
 
•    Discount rate /terminal
capitalization rate

 
•    Increases (decreases) in discount rate or terminal capitalization rate decrease (increase) fair value
 
•    Decreases (increases) in discount rates or terminal capitalization rates tend to be accompanied by increases (decreases) in cash flows that may offset changes in fair value from rates
 
 
•    Exit Date

 
•    Increases (decreases) in exit date decrease (increase) fair value

 
•    Increases (decreases) in the exit date tend to be the result of changing cash flow profiles that may result in higher (lower) growth in cash flows prior to stabilizing in the terminal year

The following table summarizes the key valuation metrics of the company’s investment properties:
 
2018
 
2017
AS AT DEC. 31
Discount Rate

 
Terminal Capitalization Rate

 
Investment Horizon (years)
 
Discount
Rate

 
Terminal Capitalization Rate

 
Investment Horizon (years)
Core office
 
 
 
 
 
 
 
 
 
 
 
United States
6.9
%
 
5.6
%
 
12
 
7.0
%
 
5.8
%
 
13
Canada
6.0
%
 
5.4
%
 
10
 
6.1
%
 
5.5
%
 
10
Australia
7.0
%
 
6.2
%
 
10
 
7.0
%
 
6.1
%
 
10
Brazil
9.6
%
 
7.7
%
 
6
 
9.7
%
 
7.6
%
 
7
Core retail
7.1
%
 
6.0
%
 
12
 
n/a

 
n/a

 
n/a
LP Investments and other
 
 
 
 
 
 
 
 
 
 
 
LP Investments office
10.2
%
 
7.0
%
 
6
 
10.2
%
 
7.5
%
 
7
LP Investments retail
8.9
%
 
7.8
%
 
9
 
9.0
%
 
8.0
%
 
10
Logistics
9.3
%
 
8.3
%
 
10
 
6.8
%
 
6.2
%
 
10
Mixed-use
7.8
%
 
5.4
%
 
10
 
8.4
%
 
5.3
%
 
10
Multifamily1
4.8
%
 
n/a

 
n/a
 
4.8
%
 
n/a

 
n/a
Triple net lease1
6.3
%
 
n/a

 
n/a
 
6.4
%
 
n/a

 
n/a
Self-storage1
5.7
%
 
n/a

 
n/a
 
5.8
%
 
n/a

 
n/a
Student housing1
5.6
%
 
n/a

 
n/a
 
5.8
%
 
n/a

 
n/a
Manufactured housing1
5.4
%
 
n/a

 
n/a
 
5.8
%
 
n/a

 
n/a
Other investment properties1
7.0
%
 
n/a

 
n/a
 
5.8
%
 
n/a

 
n/a
1.
Multifamily, triple net lease, self-storage, student housing, manufactured housing and other investment properties are valued using the direct capitalization method. The rates presented as the discount rate represent the overall implied capitalization rate. The terminal capitalization rate and the investment horizon are not applicable.
Valuations utilize significant unobservable inputs (Level 3) when determining the fair value of infrastructure’s utilities, transport, energy, data infrastructure and sustainable resources assets. The significant Level 3 inputs include:
Valuation Technique
 
Significant Unobservable Inputs
 
Relationship of Unobservable Inputs to Fair Value
 
 Mitigating Factors
Discounted cash flow analysis
 
•    Future cash flows
 
•    Increases (decreases) in future cash flows increase (decrease) fair value

 
•    Increases (decreases) in cash flows tend to be accompanied by increases (decreases) in discount rates that may offset changes in fair value from cash flows
 
 
•    Discount rate
 
•    Increases (decreases) in discount rate decrease (increase) fair value
 
•    Increases (decreases) in discount rates tend to be accompanied by increases (decreases) in cash flows that may offset changes in fair value from discount rates
 
 
•    Terminal capitalization multiple
 
•    Increases (decreases) in terminal capitalization multiple increases (decreases) fair value
 
•    Increases (decreases) in terminal capitalization multiple tend to be accompanied by increases (decreases) in cash flows that may offset changes in fair value from terminal capitalization multiple
 
 
•    Investment horizon
 
•    Increases (decreases) in the investment horizon decrease (increase) fair value
 
•    Increases (decreases) in the investment horizon tend to be the result of changing cash flow profiles that may result in higher (lower) growth in cash flows prior to stabilizing in the terminal year
Key valuation metrics of the company’s utilities, transport, energy, data infrastructure and sustainable resources assets at the end of 2018 and 2017 are summarized below.
 
Utilities
 
Transport
 
Energy
 
Data Infrastructure
 
Sustainable Resources
AS AT DEC. 31
2018
 
2017
 
2018
 
2017
 
2018

 
2017

 
2018

 
2017
 
2018
 
2017
Discount rates
7 – 14%
 
7 – 12%
 
10 – 13%
 
10 – 15%
 
12 – 15%

 
12 – 15%

 
13 – 15%

 
n/a
 
5 – 8%
 
5 – 8%
Terminal capitalization multiples
8x – 22x
 
7x – 21x
 
9x – 14x
 
9x – 14x
 
10x – 14x

 
8x – 13x

 
10x – 11x

 
n/a
 
12x - 23x
 
12x - 23x
Investment horizon / Exit date (years)
10 – 20
 
10 – 20
 
10 – 20
 
10 – 20
 
10

 
10

 
10

 
n/a
 
3 – 30
 
3 – 30
Key valuation metrics of the company’s hydroelectric, wind and solar generating facilities at the end of 2018 and 2017 are summarized below.
 
North America
 
Brazil
 
Colombia
 
Europe
AS AT DEC. 31
2018
 
2017
 
2018

 
2017

 
2018

 
2017

 
2018
 
2017
Discount rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contracted
4.8 – 5.6%
 
4.9 – 6.0%
 
9.0
%
 
8.9
%
 
9.6
%
 
11.3
%
 
4.0 – 4.3%
 
4.1 – 4.5%
Uncontracted
6.4 – 7.2%
 
6.5 – 7.6%
 
10.3
%
 
10.2
%
 
10.9
%
 
12.6
%
 
5.8 – 6.1%
 
5.9 – 6.3%
Terminal capitalization rate1
6.1 – 7.1%
 
6.2 – 7.5%
 
n/a

 
n/a

 
10.4
%
 
12.6
%
 
n/a
 
n/a
Exit date
2039
 
2037
 
2047

 
2032

 
2038

 
2037

 
2033
 
2031
1.
Terminal capitalization rate applies only to hydroelectric assets in North America and Colombia.
The significant Level 3 inputs include:
Valuation Technique
 
Significant Unobservable Inputs
 
Relationship of Unobservable Inputs to Fair Value
 
 Mitigating Factors
Discounted cash flow analysis
 
•    Future cash flows – primarily impacted by future electricity price assumptions

 
•    Increases (decreases) in future cash flows increase (decrease) fair value

 
•    Increases (decreases) in cash flows tend to be accompanied by increases (decreases) in discount rates that may offset changes in fair value from cash flows
 
 
•    Discount rate
 
•    Increases (decreases) in discount rate decrease (increase) fair value
 
•    Increases (decreases) in discount rates tend to be accompanied by increases (decreases) in cash flows that may offset changes in fair value from discount rates

 
 
•    Terminal capitalization rate

 
•    Increases (decreases) in terminal capitalization rate decrease (increase) fair value

 
•    Increases (decreases) in terminal capitalization rates tend to be accompanied by increases (decreases) in cash flows that may offset changes in fair value from terminal capitalization rates
 
 
•    Exit date

 
•    Increases (decreases) in the exit date decrease (increase) fair value

 
•    Increases (decreases) in the exit date tend to be the result of changing cash flow profiles that may result in higher (lower) growth in cash flows prior to stabilizing in the terminal year
the following significant unobservable inputs as part of our valuation:
Valuation Technique
 
Significant Unobservable Input(s)
 
Relationship of Unobservable Input(s) to Fair Value
 
Mitigating Factor(s)
Discounted cash flow models
 
•    Future cash flows

 
•    Increases (decreases) in future cash flows increase (decrease) the recoverable amount

 
•    Increases (decreases) in cash flows tend to be accompanied by increases (decreases) in discount rates that may offset changes in recoverable amounts from cash flows
 
 
•    Discount rate

 
•    Increases (decreases) in discount rate decrease (increase) the recoverable amount

 
•    Increases (decreases) in discount rates tend to be accompanied by increases (decreases) in cash flows that may offset changes in recoverable amounts from discount rates

 
 
•    Terminal capitalization rate

 
•    Increases (decreases) in terminal capitalization rate decrease (increase) the recoverable amount
 
•    Increases (decreases) in terminal capitalization rates tend to be accompanied by increases (decreases) in cash flows that may offset changes in recoverable amounts from terminal capitalization rates

 
 
•    Exit date

 
•    Increases (decreases) in the exit date decrease (increase) the recoverable amount
 
•    Increases (decreases) in the exit date tend to be the result of changing cash flow profiles that may result in higher (lower) growth in cash flows prior to stabilizing in the terminal year
The recoverable amounts used in goodwill impairment testing are calculated using discounted cash flow models based on the following significant unobservable inputs:
Valuation Technique
 
Significant Unobservable Input(s)
 
Relationship of Unobservable Input(s) to Fair Value
 
Mitigating Factor(s)
Discounted cash flow models
 
•    Future cash flows
 
•    Increases (decreases) in future cash flows increase (decrease) the recoverable amount
 
•    Increases (decreases) in cash flows tend to be accompanied by increases (decreases) in discount rates that may offset changes in recoverable amounts from cash flows
 
 
•    Discount rate
 
•    Increases (decreases) in discount rate decrease (increase) the recoverable amount
 
•    Increases (decreases) in discount rates tend to be accompanied by increases (decreases) in cash flows that may offset changes in recoverable amounts from discount rates
 
 
•    Terminal capitalization rate / multiple
 
•    Increases (decreases) in terminal capitalization rate/multiple decrease (increase) the recoverable amount
 
•    Increases (decreases) in terminal capitalization rates/multiple tend to be accompanied by increases (decreases) in cash flows that may offset changes in recoverable amounts from terminal capitalization rates
 
 
•    Exit date / terminal year of cash flows
 
•    Increases (decreases) in the exit date/terminal year of cash flows decrease (increase) the recoverable amount
 
•    Increases (decreases) in the exit date/terminal year of cash flows tend to be the result of changing cash flow profiles that may result in higher (lower) growth in cash flows prior to stabilizing in the terminal year