What is the formula to calculate the present value of a growing annuity with perpetuity, discount rate, and inflation rate?

Economics Time Value Of Money Questions



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What is the formula to calculate the present value of a growing annuity with perpetuity, discount rate, and inflation rate?

The formula to calculate the present value of a growing annuity with perpetuity, discount rate, and inflation rate is:

PV = C / (r - g)

Where:
PV = Present Value
C = Cash flow of the first period
r = Discount rate
g = Growth rate of the annuity