If the Interest Rate Is 6%, Which Expression Will Determine

Multiple Choice

If the interest rate is 6%, which expression will determine the appropriate price to pay for a business that you expect to earn $5,000 in each of the next ten years and be sold for $25,000 in the eleventh year.

A) PV = $5,000[FVFA_6,10] + $25,000[FVF_6,11]
B) PV = $5,000[PVFA_6,10] + $25,000[FVF_6,11]
C) PV = $5,000[PVFA_6,10] + $25,000[PVF_6,11]
D) None of the above