What is the present value of the following a A $300 perpetuity discounted back to the present at 8 percent b A $1,000 perpetuity discounted back to the present at 12 percent c A $100 perpetuity discounted back to the present at 9 percent d A $95 perpetuity discounted back to the present at 5 percen...

The question is complete and asks for the present value of four different perpetuities give ...

What is the present value of the following? a. A $300 perpetuity discounted back to the present

Question:

What is the present value of the following?
a. A $300 discounted back to the present at 8 percent
b. A $1,000 discounted back to the present at 12 percent
c. A $100 discounted back to the present at 9 percent
d. A $95 discounted back to the present at 5 percent

Perpetuity
Perpetuity refers to payments that are made without an end or maturity date. A perpetuity is classified as an annuity, which is something that earns a dividend or receives a payment at a regularly scheduled interval, generally yearly. So, how...

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