What is the present value of a perpetuity

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What is the present value of a perpetuity of $100 given a discount rate of 5%?
$ 2,000
$ 3,000
$ 1,500
$ 500


Suppose a riskless project requires an initial investment of $10 and will generate a one-time cash inflow of $30 two years later. Assuming a risk-free interest rate of 5%, which of the following statements about the project is NOT true?
The net present value of the project is positive
The IRR is greater than 50 percent.
The accounting rate of return on the project is positive.
The payback period is less than 2 years



Compute the net present value of an investment with 5 years of annual cash inflows of $100 and two cash outflows, one today of $100 and one at the beginning of the second year of $50. Use a discount rate of 10 percent.
$229.08
$287.60
$233.62
$271.53

Reference no: EM13340575

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