Question

A business is expected to yield a continuous flow of profit at the rate of $1,000,000 per year. If money will earn interest at the nominal rate of 8% per year compounded continuously, what is the present value of the business forever?
A) $12,600,000
B) $12,510,000
C) $12,500,000
D) $1,250,000
E) $1,350,000

Answer

This answer is hidden. It contains 1 characters.