If the Interest Rate Is 10%,what Is the Present Value

question 20

Multiple Choice

If the interest rate is 10%,what is the present value of a stream of annual future cash flows equal to $1,000,expected to be paid at the end of every year,forever?

• A)$1,00,000.00
• B)$10,000,000
• C)$1,500,000
• D)$10,000
• E)None of the above.

---

Definitions:

Physiological Component

The aspect of an emotional or psychological state that is related to physical changes in the body.

Emotional Experience

A complex state of feeling resulting in physical and psychological changes that influence thought and behavior.

Behavioural Component

Refers to the actions or reactions of an individual in response to external or internal stimuli.

Achievement Motivation

The drive or desire to accomplish goals, excel, and attain success as defined by the individual or society.