This calculator is designed to compute the present value of a perpetuity. It is ideal for financial analysts and investors who need to assess consistent cash flows over an indefinite period.
Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da Investopedia.
Present Value = Cash Flow / Discount Rate
For instance, if you have a perpetuity with an annual cash flow of $1000 and a discount rate of 5%, the present value is calculated as follows:
Present Value = $1000 / 0.05 = $20,000
A perpetuity is a type of annuity that receives an infinite amount of periodic payments.
The discount rate is usually determined by the rate of return that could be obtained from an investment with similar risk.
It helps in evaluating the present value of investments with indefinite cash flows.