Finance
Value a payment that lasts forever
=B1/B2How it works in Excel
- B1 is the yearly payment.
- B2 is the discount rate.
- With growth, use =B1/(B2-g), where g is the growth rate.
The idea in general
Far-off payments are worth so little today that an endless stream still has a finite value.
What I assumed
- The payment is in B1 and the rate is in B2.
Check the result on your own data before relying on it.