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.