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Kalsang

How do I calculate NPV of perpetual annuity.

What is the method to calculate NPV from perpetual annuity.

bpeltzer

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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