单选题

Tapley Acquisition, Inc., is considering the purchase of Tangent Company. The acquisition would require an initial investment of $190000, but Tapley's after-tax net cash flows would increase by $30000 per year and remain at this new level forever. Assume a cost of capital of 15 percent. Should Tapley buy Tangent?(     )

【正确答案】 B
【答案解析】

This is perpetuity. PV=PMT/I=30000/0.15=200000.
200000-190000=10000.