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How to calculate NPV of an infinite series?
I have a series of cashflows, forecast to grow at say 2% each year and
go on indefinitely. Is there a formula or function I can use to get the value of the maximum net present value of this series? The only way I can find so far is to model it for 100's of periods, use the NPV function for each year in turn, then see at what year the NPV stops changing... must be a better way surely? |
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