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@forsakennowforgiven Thanks for that.

@marc22039 I see. That makes sense for perpetuities. And I just realized that the reason I was confused about the same thing for annuities is because I saw the same C/(r-g) term in the annuities formula and just assumed it would cause the same problem. But in working out an example I can see...

The net present value of a perpetuity is calculated as PV = C / (r-g) where C is the cash flow in the first period, r is the market interest rate (or discount rate) and g is the growth rate of the cash flow. Importantly, the formula doesn't work if the growth rate is higher than the interest...