The present value of a $25,000 perpetuity at a 14 percent discount rate is _______

The present value of a $25,000 perpetuity at a 14 percent discount rate is ________.

A. $285,000
B. $178,571
C. $219,298
D. $350,000

The Correct Answer for the given question is option B. $178,571

Given.

Perpetuity = $25,000

Discount rate = 14%

$\begin{aligned} Present value & = \frac{Perpetuity}{Discount rate} \\ = \frac{$ 25, 000}{0.14} \\ = $ 178, 571 \end{aligned}$

=$25,000/0.14

=$178,571