What is the formula to calculate the present value of an annuity due with perpetuity?

Economics Time Value Of Money Questions



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What is the formula to calculate the present value of an annuity due with perpetuity?

The formula to calculate the present value of an annuity due with perpetuity is:

PV = C / (r - g)

Where:
PV = Present value
C = Cash flow per period
r = Discount rate
g = Growth rate

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