Value of perpetual payments

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Reference no: EM131175173

Hello, so I calculated that the present value of a perpetuity was 922.96 which would be less than the $1000 I was offered to pay for the perpetuity (I would only start receiving payments from the perpetuity in the 25th year.

Can someone explain to me what this suggests about the value of perpetual payments?

Reference no: EM131175173

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