A perpetuity has a cash flow of ₹625 and a required rate of return of 8%. If the cash flow is expected to grow at a constant rate of 4% per year,…
CA Foundation · Quantitative Aptitude · MTP · January 2026
A perpetuity has a cash flow of ₹625 and a required rate of return of 8%. If the cash flow is expected to grow at a constant rate of 4% per year, then the intrinsic value of this perpetuity (present value of growing perpetuity) is;
Suggested Answer and Working Notes:
Correct Answer: Option (A)
A. ₹15,625
Topics: Part-A: Business Mathematics
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