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difficult terms for review.
What is a perpetuity? | It is an annuity that has no end point |
What is an example of a perpetuity? | A fixed coupon payment on permanently invested sum of money |
What is the PV (today) of a perpetuity if next year’s cashflow is expected to be $2,398 and the discount rate is constant at 12%? | PV = 2398/0.12 = $19,983.33 |
What is a perpetuity?
What is an example of a perpetuity?
What is the PV (today) of a perpetuity if next year’s cashflow is expected to be $2,398 and the discount rate is constant at 12%?