If the Discount Rate Is 5 Percent, the Present Value

question 24

Multiple Choice

If the discount rate is 5 percent, the present value of annual $100, 000 payments in perpetuity (i.e., continued indefinitely into the future) is

• A)$2, 000, 000
• B)$1, 246, 296
• C)$1, 000, 000
• D)$976, 463
• E)infinite

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Definitions:

Tassou Performances

A form of traditional African oral performance that combines speaking, singing, and rhythm, often in a ceremonial or storytelling context.

MC Solaar

A French rapper of Senegalese and Chadian descent, known for his complex lyrics and significant impact on the French rap scene.

Duggy Tee

A Senegalese rapper widely considered as one of the pioneers of hip hop music in Senegal who has been active since the early 1990s.

Senegal

A country located on the West coast of Africa, known for its rich cultural heritage, historical significance in the transatlantic slave trade, and vibrant music and art scenes.