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Forums › ACCA Forums › ACCA MA Management Accounting Forums › Perpetuity Formula
How does perpetuity formula work?
I just don’t seem to understand it.
For example if X has a choice of receiving $5,000 now or an annual amount forever and assume interest rate is 8%.
When I try to apply the formula cashflow/r I dont get it how to get the answer.
Can anyone tell me how the formula works or how to get the answer?
