# 15000000 20000000 25000000 30000000 35000000 40000000

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\$15,000,000 \$20,000,000 \$25,000,000 \$30,000,000 \$35,000,000 \$40,000,000 \$45,000,000 \$50,000,000 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% Growth Rate in Gold Prices Present Value of Extracted Gold

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Aswath Damodaran 33 Concept Check n If both the growth rate and the discount rate go up by 1%, will the present value of the gold to be extracted from this mine increase or decrease?
Aswath Damodaran 34 IV. Perpetuity n A perpetuity is a constant cash flow at regular intervals forever. The present value of a perpetuity is- PV of Perpetuity = A

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