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A perpetuity will pay $800 per year, starting five years after the perpetuity is purchased. What is the present value (PV) of this perpetuty on

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A perpetuity will pay $800 per year, starting five years after the perpetuity is purchased. What is the present value (PV) of this perpetuty on the date that it is purchased, given that the interest rate is 10%? OA $5,464 OB $3,278 OC. 54371 OD. $2,732 A bank offers a home buyer a 25-year loan at 6% per year. If the home buyer borrows $130,000 from the bank, how much must be repaid every year? O A $14,237 26 B. $10,169.47 OC. $12.203.36 OD. $16.271.15 Luther Corporation Consolidated Income Statement Year ended December 31 (in Smillions) 2006 610.1 (5002) 109.9 2005 578.3 (481.9) 96.4 Total sales Cost of sales Gross profit Selling general, and administrative expenses Research and development Depreciation and amortization Operating income (40.5) (24.6) (3.6) 41.2 (39.0) (22.8) (3.3) 31.3 OA. $1.06 B. $0.53 OC. $0.85 OD. $1.27

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