alleryStart learning →What is the present value of Rs 1,200 paid every year forever at 8%?
ARs 15,000
BRs 12,000
CRs 14,400
DRs 9,600
Answer & Solution
Correct answer: A. Rs 15,000
Perpetuity value is 1,200 / 0.08 = Rs 15,000.
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