Final answer:
Terminal cash flows are the final cash movements at the conclusion of a project, which must be included in project's cash flow forecasts for accurate financial planning.
Step-by-step explanation:
The cash flows that occur at the end of a project are referred to as terminal cash flows. These cash flows represent the final balancing amount of cash that is generated or spent as the project comes to a conclusion, and they include any salvage value from the sale of assets, the return of working capital, and the final revenue and expense tallies that wrap up the project's financial activities. As such, it is essential for accurate financial forecasting that these terminal cash flows be included in a project's cash flow forecasts, ensuring that all financial outcomes of the project are considered.