Question: Question 3 We have often discussed the formulas for the present value of a perpetuity (aka: no-growth perpetuity) and the present value of an ordinary
Question 3 We have often 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 T (1) (II) CF (1+r)' PV = CF = T CF With CF > 0 and 0
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