#summary #tvm
The present value of a perpetuity is A/r, where A is the periodic payment to be received forever.
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Open it may be handled in a similar fashion as single payments if we use annuity factors instead of single-payment factors.
The present value, PV, is the future value, FV, times the present value factor, (1 + r) − N .
<span>The present value of a perpetuity is A/r, where A is the periodic payment to be received forever.
It is possible to calculate an unknown variable, given the other relevant variables in time value of money problems.
The cash flow additivity principle c Summary
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