Present Value with Supernormal Growth Rate
Time Line
Which
Ct+1 = Ct(1+g)1
Ct+2 = Ct(1+g)2
Ct+3 = Ct(1+g)2
………………………………………………………………………………………………
So present value is summarized as follows:
Time Line
Which
Ct+1 = Ct(1+g)1
Ct+2 = Ct(1+g)2
Ct+3 = Ct(1+g)2
………………………………………………………………………………………………
So present value is summarized as follows: