A growing perpetuity, where the rate of growth is greater than the discount rate, will have an infinitely large present value (PV).

Name: A growing perpetuity, where the rate of growth is greater than the discount rate, will have an infinitely large present value (PV).
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Quizplus · Accepted Answer

This is because as the rate of growth is greater than the discount rate, the cash flows will keep increasing at a faster rate. This leads to an infinite stream of increasing cash flows, which results in an infinite PV.

A Growing Perpetuity, Where the Rate of Growth Is Greater