Since perpetuity payments continue forever, how can a present value be computed? Why isnt the present value

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Since perpetuity payments continue forever, how can a present value be computed? Why isn’t the present value infinite?

Perpetuity
Perpetuity refers to payments that are made without an end or maturity date. A perpetuity is classified as an annuity, which is something that earns a dividend or receives a payment at a regularly scheduled interval, generally yearly. So, how...
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Related Book For  answer-question

Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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