Question:

Why is it not possible to determine the future value of a perpertual stream of cash flow?

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Like answer # 4, yeah i think the value of the perpetual cash flows is infinite, not constant and simply perpetually increasing.

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4 ANSWERS


  1. It is possible! What are you talking about?


  2. You can, and what you describe is known as a perpetuity. Google it, you'll find more if you need.

  3. If you know the amount of the income (and how it would change) and are willing to estimate inflation and interest rates then its possible (but maybe its not possible because you can't know what inflation and interest rates will be).  Anyhow, you can estimate it but can't know it exactly.


  4. Your question is unclear, but...

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