A Business Is Expected to Yield a Continuous Flow of Profit

question 50

Multiple Choice

A business is expected to yield a continuous flow of profit at the rate of $600,000 per year. If money will earn interest at the nominal rate of 8% per year compounded continuously, what is the present value of the business forever?

• A)$7,600,000
• B)$7,510,000
• C)$7,500,000
• D)$750,000
• E)$850,000

---

Definitions:

Victim

An individual who suffers harm or loss as a result of a crime, accident, or other event or action.

Sexual Contact

Any form of physical interaction between individuals that involves sexual or genital stimulation.

Sexual Behavior

Activities or actions related to the expression of sexuality and sexual feelings towards oneself or others.

Explicit Consent

Clear, unequivocal agreement to participate in an activity or process, often communicated verbally or in writing.