pls go into depth on each part, I am a 5 year old learning this material. Not really, but explain it as that. Thank you

We have often discussed the formulas for the present value of a perpetuity perpetuity) and the present value of an ordinary annuity (aka: finite series of cash flows): PV = CF T CF PV = 1=1 (1+r)i (1) (II) CF =1 (1+r)i CF as n With CF > 0 and 0 0 and 0