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How do I calculate NPV of perpetual annuity.



 
 
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  #1  
Old May 4th 07, 06:00 AM posted to microsoft.public.excel.worksheet.functions
Kalsang
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Default How do I calculate NPV of perpetual annuity.

What is the method to calculate NPV from perpetual annuity.
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  #2  
Old May 4th 07, 12:25 PM posted to microsoft.public.excel.worksheet.functions
bpeltzer
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Posts: 171
Default How do I calculate NPV of perpetual annuity.

If the first payment is due a year from now, the PV is simply the annual
payment divided by the interest rate. Ex: $1000 paid annually, with an
interest rate of 8% is $12500.

"Kalsang" wrote:

> What is the method to calculate NPV from perpetual annuity.

 




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