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What is the amount that an investor wants to pay for a perpetuity that will provide $20,000 per year to the investor? The rate of return is 8% A. 4250,000 В. 425,000 С. 400,000 D. 250,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 11EA: How much would you invest today in order to receive $30,000 in each of the following (for further...

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Question

What is the amount that an investor wants to pay for a perpetuity that will provide $20,000
per year to the investor? The rate of return is 8%
А. 4250,000
В. 425,000
С. 400,000
D. 250,000

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