perpetuity

Vocabulary Word

Definition

'Perpetuity' is when something lasts forever without stopping or ending. Think of it like a movie that never ends, continually playing scene after scene.

Examples in Different Contexts

In financial analysis, calculating 'perpetuity' is essential. A financial analyst might say, 'The concept of perpetuity is crucial when valuing income-generating assets or determining the present value of future cash flows that are expected to continue indefinitely.'

Practice Scenarios

Law

Scenario:

The client is asking for permanent usage rights of the property, is it feasible?

Response:

Yes, but we have to ensure the agreement stipulates that these rights exist in perpetuity.

Business

Scenario:

The financial future of our company depends significantly on the successful implementation of sustainable business practices.

Response:

I agree. If we think in perpetuity, we should prioritize long-term sustainability over short-term profits.