The net present value of a perpetuity is not as large as it might seem because the time value of money erodes the value of dollars far into the future, due to inflation. Therefore, the cash flows ...

Thus, the future value of an annuity due at N-1, will be equal to that of the annuity at time N. A perpetuity is an annuity that pays forever. This sounds like a great deal, but cash flows beyond ...

The real benefit of a perpetuity is realized in the near future as opposed to later in time. This is due to the difference in how a perpetuity is calculated compared to an annuity. Because a ...

The New York Times writes about the shifting meaning of “perpetuity” when the word is applied to putting multimillion-dollar donors’ names on cultural institutions. The article was prompted by Lincoln ...

(Instead, the health of the university actually increased due to a recession-driven rise in tuition income.) As I saw the healthiest entities suffer while under-endowed ones thrived, I realized that ...