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

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 and growth?

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

PV = C / (r - g)

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