Net Present Value of Perpetuity

COMPUTE NET PRESENT VALUE OF PERPETIUTYSCENARIO:
  • You are planning to invest in a business venture.
  • You have been assured that you will receive, in return, a certain amount at the end of each period for as long as the business is alive.
  • The prevailing inflation rate, however, will certainly reduce the value of the money you receive each period.
  • What is the net present value of this perpetual income?
Select your desired monetary unit.
The amount you want to invest in the business venture. (i.e. 100,000)
The amount you will receive each period in return for the investment. (i.e. 30,000)
The rate by which the returns have been compounded. (i.e. 7%)