Concept explainers
Perpetuity: A stream of cash flows which occurs at the regular intervals is known as the perpetuity. These all cash flows have the equal amount and go last forever.
Future Value: The future value is that value of an investment which will be realizable in future. When the amount is invested today at a specific rate, its future value will be more than the present value of money invested.
To Identify: The worth of the right to receipt forever, start from the 10 years.
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Fundamentals of Corporate Finance (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
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