What Is the Present Value of a Stream of Annual

question 85

Multiple Choice

What is the present value of a stream of annual end-of-the-year annuity cash flows if the discount rate is 0%,and the cash flows of $50 last for 25 years?

• A)Less than $1,000
• B)Exactly $1,250
• C)Exactly $1,000
• D)This question cannot be answered because we have an interest rate of 0.0%.

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