There are formulas for the present value of a perpetuity (aka: no-growth perpetuity) and the present value of an ordinary annuity (aka: finite series of cash flows):

(I)

(II)

With CF > 0 and 0

converges to

as n approaches

. Create a numerical example to show that this is so and explain the relevance of this convergence with respect to the estimation of financial asset valuation.

PLEASE show in great detail how to calculate ordinary annuity perpetuity.