What is the method to calculate NPV from perpetual annuity.
B bpeltzer May 4, 2007 #2 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.
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.
