What Is the Present Value of an Infinite Stream of Annual

question 73

Multiple Choice

What is the present value of an infinite stream of annual payments of $10,000 per year if the first payment is received one year from today? Assume the interest rate is 10 percent.

• A)$100,000
• B)$1,000,000
• C)$10,000,000
• D)$1,000,000,000

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