Question: 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:

In class, we discussed the formulas for the present value of

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): CF PV r (I) (II) PV = CF ". *i = 1(1+r) CF = = CF as n r With CF >0 and 0

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