Difference between revisions of "Growing Perpetuity"
Jump to navigation
Jump to search
| Line 1: | Line 1: | ||
| − | Growing Perpetuity | + | Growing [[Perpetuity|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''' = <math>\frac{C_1}{r-g}</math> | ||
| + | |||
| + | 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.
