In payment for his help with the construction of Valhalla, Wotan offers Fafner two alternatives. First, he offers $1,260 per year forever (with the first payment in one year)
Second, he offers his sister-in-law, Freia (the girl with the golden apples). If Fafner thinks that Freia is worth $12,000 and his required rate of return is 10.5%, which of the following is correct?
A) Freia is more valuable.
B) The perpetuity is more valuable.
C) The two are equal in value. He is indifferent between them.
C
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The primary limitation with the product division structure is the ________
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