Question: 2. In class, we discussed the formulas for the present value of a perpetuity (aka: no-growth perpetuity) and the present value of an ordinary annuity
2. In class, we discussed the formulas for the present value of a perpetuity (aka: no-growth perpetuity) and the present value of an ordinary annuity (aka: finite series of cash flows): Wiath and. We know that converges to as n approaches. Create a numerical example to show that this is so and explain the relevance of this convergence with respect to the estimation of financial asset valuation
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