Explain the various inputs to present value of annuity

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1. Explain the various inputs to the present value of an annuity (i.e. C, r, t, and PVA). How is the value of the annuity impacted by each input?

2. Explain what happens to the value of a perpetuity over time, assuming the perpetuity has begun.

3. Explain what happens to the value of a growing perpetuity over time, assuming the growing perpetuity has begun.

4. Explain why the value today of a perpetuity that doesn’t start until sometime in the future is not simply C/r.

Reference no: EM131952978

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