A Business Is Expected to Yield a Continuous Flow of Profit

Multiple Choice

A business is expected to yield a continuous flow of profit at the rate of $600,000 per year. If money will earn interest at the nominal rate of 8% per year compounded continuously, what is the present value of the business forever?

A) $7,600,000
B) $7,510,000
C) $7,500,000
D) $750,000
E) $850,000