7. The present worth of a cash flow of $1,000 that occurs every 10 years forever, with the first oneoccurring now with i% per year is:a. $1,000+ {$1,000 x (A/F, i%, 10) / i%}b. $1,000+ (($1,000/i%) × 10}c. $1,000 (A/F, 1%, 10) / 1%d. $1,000+ $1,000 x (A/P, 1%, 10)/1%}

A perpetuity is a financial instrument that promises a constant and never-ending stream of cash…

7. The present worth of a cash flow of $1,000 that occurs every 10 years forever, with the first on occurring now with i% per year is: a. $1,000+ $1,000 x (A/F, i %, 10) / i%} b. $1,000+ ($1,000/i%) × 10} c. $1,000 (A/F, 1%, 10)/1% d. $1,000+ ($1,000 x (A/P, 1%, 10) /i%}

7. The present worth of a cash flow of $1,000 that occurs every 10 years forever, with the first on occurring now with i% per year is: a. $1,000+ $1,000 x (A/F, i %, 10) / i%} b. $1,000+ ($1,000/i%) × 10} c. $1,000 (A/F, 1%, 10)/1% d. $1,000+ ($1,000 x (A/P, 1%, 10) /i%}

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter12: Capital Investment Decisions

Section: Chapter Questions

Problem 5MCQ: An investment of 1,000 produces a net cash inflow of 500 in the first year and 750 in the second...

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7. The present worth of a cash flow of $1,000 that occurs every 10 years forever, with the first one
occurring now with i% per year is:
a. $1,000+ {$1,000 x (A/F, i%, 10) / i%}
b. $1,000+ (($1,000/i%) × 10}
c. $1,000 (A/F, 1%, 10) / 1%
d. $1,000+ $1,000 x (A/P, 1%, 10)/1%}

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