The present value of a $20,000 perpetuity at a 7 percent discount rate is
A. $186,915.
B. $285,714.
C. $140,000.
D. $325,000.
Answer:B
The present value of a $20,000 perpetuity at a 7 percent discount rate is
A. $186,915. B. $285,714. C. $140,000. D. $325,000.