Respuesta :
Perpetuity in the financial system is a situation where a stream of cash flow payments continues indefinitely or is an annuity that has no end. In valuation analysis, perpetuities are used to find the present value of a company's future projected cash flow stream and the company's terminal value.
What is an example of a perpetuity?
A perpetuity is a type of annuity where there is no end to the payments. It may have fixed or growing payments depending on its nature. For example, a rental property will give you a fixed amount every month. Meanwhile, a government bond will result in an increasing amount after each period as time goes on.
How do you use perpetuity?
The land revenue was fixed in perpetuity with the zemindar in 17 93.
Such land was let either on five-year leases or in perpetuity to colon.
Iu 1791 the subsidy was changed to $6000, in perpetuity; for some years later this was raised to $10,000, and is still annually paid.
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