Quick finance question about perpetuities

cchen

Diamond Member
Oct 12, 1999
6,062
0
76
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?
 

sygyzy

Lifer
Oct 21, 2000
14,001
4
76
At three years it would be C/R, then you need to discount it to your current year.