Management Notes

Reference Notes for Management

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

 

Answer Explanation for Question: The present value of a $25,000 perpetuity at a 14 percent discount rate is ________.

Given.

Perpetuity = $25,000

Discount rate = 14%

                               =$25,000/0.14

                                =$178,571

The order of presentation of activities on the statement of cash flows is

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