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##### What is the present value of a perpetuity of \$100 given a discount rate of 5%?

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What is the present value of a perpetuity of \$100 given a discount rate of 5%?;\$ 2,000;\$ 3,000;\$ 1,500;\$ 500;Suppose a riskless project requires an initial investment of \$10 and will generate a one-time cash inflow of \$30 two years later. Assuming a risk-free interest rate of 5%, which of the following statements about the project is NOT true?;The net present value of the project is positive;The IRR is greater than 50 percent.;The accounting rate of return on the project is positive.;The payback period is less than 2 years;Compute the net present value of an investment with 5 years of annual cash inflows of \$100 and two cash outflows, one today of \$100 and one at the beginning of the second year of \$50. Use a discount rate of 10 percent.;\$229.08;\$287.60;\$233.62;\$271.53;Additional Requirements

Paper#29968 | Written in 18-Jul-2015

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