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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Definitions:

Appointment Class

An object-oriented construct typically used in software applications to manage appointments, including properties like date, time, and description.

Constructors

A method in an object-oriented language that initializes an object immediately upon creation.

Default Constructor

A constructor that takes no arguments, automatically provided by the compiler if no other constructors are explicitly defined for a class.

Driver Program

A driver program is a piece of code that sets up and runs a test scenario for a software application, often used for testing or demonstrating the functionalities of specific components.