Question
What is the present value (PV) of a perpetuity which pays $5000 per year, if the interest rate is 7%. Assume that the first payment
What is the present value (PV) of a perpetuity which pays $5000 per year, if the interest rate is 7%. Assume that the first payment is at the end of the first year.
Select one:
41,49041,490
68,94268,942
66,75666,756
71,42971,429
376
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Managerial Economics and Strategy
Authors: Jeffrey M. Perloff, James A. Brander
2nd edition
134167879, 134167872, 9780134168319 , 978-0134167879
