What is the present value of $ 100 to be received at the end of every year in between now and forever if the opportunity cost rate is 5%?

What is the present value of $ 100 to be received at the end of every year in between now and forever if the opportunity cost rate is 5%?

 

 

answer:

The present value of $100 at the end of every year to be recevied forever = Amount / Discount rate

= $100 / 0.05

= $2000

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