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Topics: Perpetuity

Present Value of Perpetuity Mathematical Explanation

Present Value of Perpetuity Mathematical Explanation

Subject: Accounting
Perpetuity is an infinite series of periodic payments of equal face value. In other words, perpetuity is a situation where a constant payment is to be made periodically for an infinite amount of time. It…
What is Present Value of Perpetuity?

What is Present Value of Perpetuity?

Subject: Accounting
The perpetuity concept refers to an infinite series of identical cash flows. It is most commonly applied to a discounted cash flow analysis, where this stream of cash flows is discounted to its present value.…

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