What is the present value of streams

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1. What is the present value of an annual payment of $50,000 that is received in perpetuity if the discount rate is 11%?

a. $368,710

b. $550,000

c. $454,545

d. $794,910

e. None of the above

2. What is the present value of following streams of future cash flows if the discount rate is 15%?

Year 1: $0

Year 2: $0

Year 3: $0

Year 4: $30,000

Year 5: $30,000

Year 6:  $30,000

Year 7:  $30,000

a. $56,315.84

b. $58,919.43

c. $67,475.75

d. $50,251.91

e. None of the above

Reference no: EM131582301

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