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If there is a perpetual stream of $5600 per year, how much is this perpetuity worth today? (Interest rate is 10% per year.) ()

 

If there is a perpetual stream of $5600 per year, how much is this perpetuity worth today? (Interest rate is 10% per year.) () (A) 65400 (B) 56000 (C) $60000 (D) 70000 The value of the factor (P/F, i,10) can be found by getting the factor values for (P/F,i,4) and (P/F, i,6) and: ( ) (A) Adding the values for (P/F, i,4) and ( P/F, 1,6) (B) Multiplying the values for (P/F, i,4) and( P/F, 1,6) (C) Dividing the value for (P/F ,i ,6) by the value for (P/F, i,4) (D) None of the above

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