rle Complebon Once started, this test must be completed in one sitting. Do not l

Question

rle Complebon Once started, this test must be completed in one sitting. Do not leave the test before clicking Save and This test does not allow backtracking. Changes to the answer after submission are prohibited Remaining Time: 25 minutes, 12 seconds. Status: Moving to the next question prevents changes to this answer. Question 6 what is the PV of stream of payments equal to S9000 paid annually (forever) and discounted back to the present at 9%? 1.5100 000 2 $99 200 3 $120 000 4 $99 850 Moving to the next question prevents changes to this answer.

Explanation / Answer

PV of stream of payments = Amount paid annually/ Discount rate =9000/.09 =$100,000

First option is correct.

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