Calculating the present value of a growing perpetuity is relatively straight forward. However how would i go about calculating the present value of a perpetuity growing at a fixed dollar amount. That is, the perpetuity pays 1 at the end of the first year, 2 at the end of the second year, 3 at the end of the third year... $n at the end of the nth year,
I know that the stream can be thought as 1, 1 + 1, 1 + 2, 1 +3, 1 +1(n-1), factoring out the 1, just shifts the problem out by 1 year and this is where i am stumped as to what to do next.
Thanks in advance for your help or any hints as to where to go next