Answer:
Present Value of Perpetuity is $25,000
Explanation:
Cash flow = $10,000
Interest rate / Yield = 4%
Present Value of Perpetuity = Cash flows / interest Rate or Yield
Present Value of Perpetuity = $10,000 / 4%
Present Value of Perpetuity = $10,000 / 0.04
Present Value of Perpetuity = $25,000
