Question
What is the present value of a perpetual stream of annual cash flows of $100, with the first cash flow to be received in one
What is the present value of a perpetual stream of annual cash flows of $100, with the first cash flow to be received in one year, assuming a discount rate of 8%?
PV = (0.08, 1, 100,0)
PV = 92.59
PV = $1,250 = $100/0.08
it's correct?
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Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz
5th edition
134128524, 978-0134128528
