A project yields an annual benefit of 25 a year starting


Question: 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 inter-at rate is 10 percent? Where x is a number less than 13 Generalize your answer to show that if the perpetual annual benefit is B and the interest rate is r, then the present value is Bit.

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Finance Basics: A project yields an annual benefit of 25 a year starting
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