Question: A project yields an annual benefit of 25 a

A project yields an annual benefit of $ 25 a year, starting next year and continuing forever. What is the present value of the benefits if the interest rate is 10 percent? Generalize your answer to show that if the perpetual annual benefit is B and the interest rate is r , then the present value is B/ r .



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  • CreatedMarch 25, 2015
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