Ralf Wilson Wants to Receive $25,000 in Perpetuity and Will

question 13

Multiple Choice

Ralf Wilson wants to receive $25,000 in perpetuity and will invest his money in an investment that will earn a return of 14 percent annually. What is the value of the investment that he needs to make today to receive his perpetual cash flow stream? (Round to the nearest dollar.)

• A) $640,225
• B) $252,325
• C) $144,350
• D) $178,571

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Definitions:

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Substances in the air that can cause harm to humans and the environment, including particulates, nitrogen dioxide, sulfur dioxide, and carbon monoxide.

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A fuel mixture that includes gasoline blended with ethanol, typically used to reduce pollutants from vehicle emissions.

Gasoline Mixed

A combination of gasoline and another substance, such as oil, used in the engines of certain types of vehicles or equipment.