Perpetuity app for iPhone and iPad

4.8 ( 9108 ratings )

Finance Education
Developer: Business Compass LLC

0.99 USD

Current version: 3.0, last update: 7 years ago
First release : 15 Jun 2010
App size: 67.49 Kb

This application calculates the present value (PV) of cash flow paid in perpetuity. Interest rate based on the risk associated with the source of cash flow is required. If the cash flow is growing with time, then the growth rate can also be supplied. This is also known as Gordon Growth Model. This is widely used in evaluating terminal value of firm once the growth of the firm has reached maturity. Typically, for the first 5 years, firms grow rapidly, then the growth matures and the rate of growth slows to the GDP growth.