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.

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