btcapital

Pretty much what Oyster said as well, 'four years from today' is the same as 'at the end of year three'

Hope it helps

draz

ok maybe I'm totally losing the plot here, but I can't see how "four years from today" is the same as "at the end of year three". I've drawn a timeline and everything.

I agree that the fourth year STARTS at the end of year three, but ""four years from today" means there has to be four completed years, right?

kamara5

sgupta0827 Wrote:
-------------------------------------------------------
> optiix Wrote:
> --------------------------------------------------
> -----
> > Everything is ok here. If perpetuity starts 4
> yrs
> > from now, then you have to discount using N = 3
> in
> > order to find present value.
>
>
> Hi Optix, Could you tell us the reason why should
> you have 3 rather than 4?


If it starts 4 years from today, that is the same as it starting at the end of year 3, which is why you would use N=3 instead of 4.

bapswarrior

Everything is ok here. If perpetuity starts 4 yrs from now, then you have to discount using N = 3 in order to find present value.

cyber21

optiix Wrote:
-------------------------------------------------------
> Everything is ok here. If perpetuity starts 4 yrs
> from now, then you have to discount using N = 3 in
> order to find present value.


Hi Optix, Could you tell us the reason why should you have 3 rather than 4?