Difference between revisions of "Growing Perpetuity"
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| − | Growing Perpetuity | + | Growing [[Perpetuity|Perpetuities]] are perpetuities where the cash you need to provide grows at a constant rate. This can be calculated by: |
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| + | '''Present Value of Growing Perpetuity''' = <math>\frac{C_1}{r-g}</math> | ||
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| + | Where <math>r</math> is the [[Discount Factor|Discount Factor]] and <math>g</math> the growth rate in cost. | ||
[[Category:finance]] | [[Category:finance]] | ||
Latest revision as of 19:24, 27 August 2020
Growing Perpetuities are perpetuities where the cash you need to provide grows at a constant rate. This can be calculated by:
Present Value of Growing Perpetuity =
Where is the Discount Factor and the growth rate in cost.