AB Company Has Decided to Donate to the Children's Hospital

question 10

Multiple Choice

AB Company has decided to donate to the children's hospital every year.The company 's first payment will be $1 million and it will grow at a constant rate of 3% forever.What is the present value of this growing perpetuity if the current market rate is 5%?

• A)$150 million
• B)$20 million
• C)$33.33 million
• D)$53.33 million
• E)$50 million

---

Definitions:

Male

The biological sex characterized by the XY chromosome pair, typically associated with male reproductive structures and secondary sexual characteristics.

Female

Referring to the sex that is typically associated with the production of ova (eggs) and has sexual anatomy that includes structures such as ovaries and a vagina.

Social-cognitive Theory

A framework for understanding, predicting, and changing human behavior that emphasizes the role of observational learning, social experience, and reciprocal determinism in the development of personality.

Sexual Attraction

The interest or desire one individual feels towards another, of the same or a different sex, based on physical or emotional cues.