What is the present value of a series of $5,000 end-of-the-year cash flows to be received forever if the required rate of return is 6.00% per year and the first cash flow is one year from today?
A) $8,333.33
B) $83,333.33
C) $300.00
D) This question cannot be answered because there is no time period provided.
B
Explanation: B) PV = PMT/r = %4,000/.06 = $83,333.33
Business
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