I don't need ai answer general accounting question Find the annual interest rate that would create a perpetual cash flowstream of $15,000 when the present value of the asset is $300,000.a. 3 percentb. 5 percentc. 10 percentd. 20 percent

PV = $300,000CF = 15,000r=?Formula:PV = CF / rTo find r:r = CF / PVPut in numbers:r = $15,000 /…

Answered: Find the annual interest rate that…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 3BE

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Find the annual interest rate that would create a perpetual cash flow stream of $15,000 when the present value of the asset is $300,000. a. 3 percent b. 5 percent c. 10 percent d. 20 percent