Present Value of a Growing Perpetuity

This video shows how to calculate the present value of a growing perpetuity using a formula. A perpetuity refers to a series of cash flows that will continue forever. If the amount of the cash flow increases each period, we refer to it as a growing perpetuity. Because a dollar received in the future is worth less than a dollar received today (due to the time value of money), we discount a growing perpetuity to its present value. The video provides an example to show how this is done.-
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