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Farah owns a perpetuity which pays RM10,000 at the end of each year. She meets you and offers to sell to you all of the

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Farah owns a perpetuity which pays RM10,000 at the end of each year. She meets you and offers to sell to you all of the payments to be received after the 10th year for RM30,000. Assume that you require a 12 percent return per annum from this investment. Will you buy the perpetuity from her? What will be the maximum price that Farah should pay to buy the perpetuity? (Do the necessary calculations to justify your decision).* A. The maximum price is RM26,831.33; should not buy it as the offer price is more than the maximum price B. The maximum price is RM32,831.33; should not buy it as the offer price is more than the maximum price C. The maximum price is RM31,831.33; should not buy it as the offer price is more than the maximum price D. The maximum price is RM36,831.33; should not buy it as the offer price is more than the maximum price

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