Since perpetuity payments continue forever, how can a present value be computed? Why isnt the present value
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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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Equation is used to calculate the present value of a perpetuity It is a limiting version of ...View the full answer
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Related Book For
Finance Applications and Theory
ISBN: 9780077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
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