Growing perpetuity factor

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Financial maths.

(GPF).

A growing perpetuity factor is the fraction 1/(r-g), used when evaluating a growing perpetuity.

Using this simple formula assumes a constant periodic cost of capital (r) for all periods from now to infinity.

It also assumes a constant compound rate of growth (g) from the first cashflow to infinity.


Sometimes known as the Growing perpetuity formula.


See also