If the Discount Rate Is 5 Percent, the Present Value

question 24

Multiple Choice

If the discount rate is 5 percent, the present value of annual $100, 000 payments in perpetuity (i.e., continued indefinitely into the future) is

• A)$2, 000, 000
• B)$1, 246, 296
• C)$1, 000, 000
• D)$976, 463
• E)infinite

---

Definitions:

Industrial Products

Goods produced and used within industries, including machinery, materials, and equipment, intended for manufacturing or service provision.

Problem-solution

A methodology or approach that identifies an issue and provides a strategic answer or resolution to address it effectively.

Group Insurance

A type of insurance policy that covers multiple individuals under one contract, commonly offered to employees by their employers.

Group Sales Presentation

A sales pitch or demonstration presented to multiple decision-makers or potential buyers at once.