Develop a numeric example and explain

Reference no: EM133223722

Question: Sports Inc. is confused about the conversion of an ordinary annuity (aka: finite series of cash flows) to the present value of a perpetuity (aka: infinite series of cash flows). First, you need to develop a numeric example and explain this concept to Sports Inc. Second, you need to explain why this concept is so important in the valuation of financial assets - stocks, corporations, buildings, stadiums, etc.

Reference no: EM133223722

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