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Basic Question 27 of 27

You expect to receive a series of annual payments forever. The present value of this series of payments is $10,000. If these payments can be invested at a rate of 15% per year, what is the amount of each cash flow?

A. $666.67
B. $1,500.00
C. infinite

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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

calculate and interpret the present value(PV) of fixed-income and equity instruments based on expected future cash flows

calculate and interpret the implied return of fixed-income instruments and required return and implied growth of equity instruments given the present value (PV) and cash flows

CFA® 2024 Level I Curriculum, Volume 1, Module 2.