Multiple Choice
What is the present value of a constant, continual stream of payments at a rate of $10,000 per year to continue forever starting now? Assume an interest rate of 8% per annum, compounded continuously.
A) $135,000
B) $130,000
C) $125,000
D) $120,000
E) $115,000
Correct Answer:
Verified
Correct Answer:
Verified
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