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Your friend promises you a perpetuity of $1 every year. If the first payment occurs in year 1 and the interest rate is 10%, which

Your friend promises you a perpetuity of $1 every year. If the first payment occurs in year 1 and the interest rate is 10%, which of the following is right about its present value at time zero?

a. $10.00

b. $15.00

c. $20.00

d. Any of the above

e. None of the above

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