单选题 Compute the present value of a perpetuity with $100 payments beginning four years from now. Assume the appropriate interest rate is 10 percent/yr.
【正确答案】 B
【答案解析】Compute the present value of the perpetuity at (t=3). Recall, the present value of a perpetuity or annuity is valued one period before the first payment. So, the present value at t=3 is 100/ 0.10=1000. Now it is necessary to discount this lump sum to t=0. Therefore, present value at t=0 is 1000/1.103=751