What is the value of this business

Reference no: EM13257873

An investor is considering investing in a perfume business that will earn $50,000 per year in perpetuity. Assume that it will take exactly one year to get the first cash flow and each cash flow will occur on the same date ever year. If the current interest rate is 5% per year then what is the value of this business?

Reference no: EM13257873

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