Multiple Choice
The present value of a perpetual stream of income that flows continually at the rate of dollars per year is given by the formula
where
is the interest rate compounded continuously.Using this formula, find the present value of a perpetual net income stream that is generated at the rate of
dollars per year. Hint:
.
A)
B)
C)
D)
E)
Correct Answer:

Verified
Correct Answer:
Verified
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