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?
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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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