Consider a perpetuity due that pays 1 at the beginning of each year, forever. The effective annual rate of interest is i. Which of the following formulas doesn't give the present value (PV) of the perpetuity?
1) PV = 1 / i
2) PV = 1 / (1 + i)
3) PV = 1 / (1 - i)
4) PV = i