What is the present value of the following a A$ 300 perpetuity discounted back to the present at 8 percent b A$ 1,000 perpetuity discounted back to the present at 12 percent c A$ 100 perpetuity discounted back to the present at 9 percent d A$ 95 perpetuity discounted back to the present at 5 percen...

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What is the present value of the following? a. A$ 300 perpetuity discounted back to the present

Question:

What is the present value of the following?
a. A$ 300 discounted back to the present at 8 percent
b. A$ 1,000 discounted back to the present at 12 percent
c. A$ 100 discounted back to the present at 9 percent
d. A$ 95 discounted back to the present at 5 percent
Perpetuity
Perpetuity refers to payments that are made without an end or maturity date. A perpetuity is classified as an annuity, which is something that earns a dividend or receives a payment at a regularly scheduled interval, generally yearly. So, how...