Perpetuity due and Perpetuity factor: Difference between pages

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An unusual perpetuity in which each of the cash flows is paid in advance (at the start of each period).
The fraction 1/r used when evaluating a fixed perpetuity.
Using this simple formula assumes a constant periodic cost of capital (r) for all periods from now to infinity.
 
Sometimes known as the Perpetuity formula.
 


== See also ==
== See also ==
* [[Annuity due]]
* [[Annuity factor]]
* [[Perpetuity]]
* [[Perpetuity]]


[[Category:Long_term_funding]]
[[Category:Corporate_finance]]

Revision as of 19:51, 17 August 2014

The fraction 1/r used when evaluating a fixed perpetuity. Using this simple formula assumes a constant periodic cost of capital (r) for all periods from now to infinity.

Sometimes known as the Perpetuity formula.


See also