What is the formula to calculate the future value of a series of cash flows with perpetuity, discount rate, and inflation rate?

Economics Time Value Of Money Questions



80 Short 71 Medium 54 Long Answer Questions Question Index

What is the formula to calculate the future value of a series of cash flows with perpetuity, discount rate, and inflation rate?

The formula to calculate the future value of a series of cash flows with perpetuity, discount rate, and inflation rate is:

Future Value = Cash Flow / (Discount Rate - Inflation Rate)