A perpetuity has a cash flow of $18.75 and a discount rate of 6%. What is the value of the perpetuity?

Name: A perpetuity has a cash flow of $18.75 and a discount rate of 6%. What is the value of the perpetuity?
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Question

Quizplus · Accepted Answer

The value of a perpetuity is calculated using the formula: Value = Cash Flow / Discount Rate. Here, it would be $18.75 / 0.06 = $312.50. Since none of the provided options match this calculation, the correct answer is D) None of the above.

A Perpetuity Has a Cash Flow of $18