Damon is contemplating taking a deal with his uncle,who is a very successful entrepreneur.He must pay his uncle $50,000 this year and an additional $50,000 at the end of both the fifth and tenth year.This would allow him to receive a perpetual annual cashflow of $12,000.What is the NPV of this offer if the interest rate is 10%?
A)$120,000
B)$30,000
C)$220,323.23
D)$69,676.77
E)$19,676.77

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The Answer of Damon is contemplating taking a deal with his uncle,who is a very successful entrepreneur.He must pay his uncle $50,000 this year and an additional $50,000 at the end of both the fifth and tenth year.This would allow him to receive a perpetual annual cashflow of $12,000.What is the NPV of this offer if the interest rate is 10%?
A)$120,000
B)$30,000
C)$220,323.23
D)$69,676.77
E)$19,676.77

Damon Is Contemplating Taking a Deal with His Uncle,who Is