Let PV be the present value of a growing perpetuity (the time 1 perpetuity) with an initial payment of C beginning one period from now and a growth rate of g. If we move all the cash flows back in time one period, the present value becomes PV*(1+r) Note that this is the present value of a growing perpetuity with an initial payment of C beginning today (time 0 perpetuity).

Question: How do the cash flows of the time 1 perpetuity compare to those of the time 0 perpetuity from time 1 on?