For perpetuity, PV timing=---;

Answer 1

In finance, the present value (PV) of a perpetuity is calculated using the formula:

\[ PV = \frac{C}{r} \]

where:

• \(C\) is the cash flow received each period,
• \(r\) is the discount rate (expressed as a decimal).

The timing of the cash flows can affect the present value calculation. There are generally two types of perpetuities:

1. Perpetuity at the end of the period: Cash flows begin at the end of the first period. The PV calculation mentioned above applies directly.

2. Perpetuity at the beginning of the period: Cash flows begin immediately. This is often referred to as an annuity due. The PV for this type is calculated using the formula:

\[ PV = \frac{C}{r} \times (1 + r) \]

When you mention "PV timing," it refers to whether the perpetuity is structured with cash flows starting at the beginning or the end of the period.

If you have any specific context or values you would like to explore further, please let me know!

Answer 2

For perpetuity also, PV timing=---;

Answer 3

It seems like you're looking for a concise way to describe the timing aspect of present value (PV) for perpetuities. Here are the two primary types of perpetuity:

1. Perpetuity Due: Cash flows start at the beginning of the period.

   • PV Timing: Beginning
   • Formula: \(PV = \frac{C}{r} \times (1 + r)\)

2. Ordinary Perpetuity: Cash flows start at the end of the period.

   • PV Timing: End
   • Formula: \(PV = \frac{C}{r}\)

You might want to fill in the blank with either "Beginning" for perpetuity due or "End" for ordinary perpetuity, depending on the context you are referring to.