Multiple Choice
You are considering the purchase of a business that is currently earning $25,000 per year in after-tax profit. If these conditions are expected to continue year after year into the future, and the interest rate is currently 10 percent, the current market value of this business is
A) $2,500.
B) $25,000.
C) $250,000.
D) $2,500,000.
Correct Answer:
Verified
Correct Answer:
Verified
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