Question
What would you be willing to pay for an infinite stream of cash flows of $50,000 per year given an interest rate of 5%? A.
A. $1,000,000
B. $421,624
C. $1,608,200
D. $150,000
E. The value is infinite.
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
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