How does one calculate the present value of a perpetuity?
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"How to prove this ?
#2|k^2# then #2|k# for some #k\inZZ#"
1 Answer
Jul 6, 2015
Explanation:
With,
CF = the periodic interest cash inflow (interest payment received.)
r = the required (market) rate of return on the investment.
There is no "n" or time period because the cash flows never end.
