C cchen Diamond Member Oct 12, 1999 6,062 0 76 Oct 1, 2003 #1 I know that the formula for find the value of a perpetuity is c/r. What if the perpetuity starts at say yr 3 rather than yr 1? Is it the same value or do I need to discount it?
I know that the formula for find the value of a perpetuity is c/r. What if the perpetuity starts at say yr 3 rather than yr 1? Is it the same value or do I need to discount it?
T thereds Diamond Member Apr 4, 2000 7,886 0 0 Oct 1, 2003 #3 Shouldn't u discount only if you need to know what its worth today?
sygyzy Lifer Oct 21, 2000 14,001 4 76 Oct 1, 2003 #4 At three years it would be C/R, then you need to discount it to your current year.
C cchen Diamond Member Oct 12, 1999 6,062 0 76 Oct 1, 2003 #5 Originally posted by: sygyzy At three years it would be C/R, then you need to discount it to your current year. Click to expand... got it, thanks
Originally posted by: sygyzy At three years it would be C/R, then you need to discount it to your current year. Click to expand... got it, thanks