Are you struggling with your Financial Economics assignments? Look no further! At https://www.economicshomeworkh....elper.com/financial- we specialize in providing expert assistance. Today, let's delve into a master-level question:
Question: Calculate the present value of an investment that promises to pay $5,000 per year forever if the interest rate is 5%.
Solution: PV = Payment / Interest Rate = $5,000 / 0.05 = $100,000.
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