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IRR of a Perpetuity

This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.

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June 1, 2015 at 4:26 am #251166
ftin
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What is the formula for IRR of a perpetuity???
June 1, 2015 at 8:29 am #251217
John Moffat
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((the annual cash flow) / (initial investment)) x 100%
(assuming that the perpetuity starts at time 1, and assuming that the perpetuity is not inflating)
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