A perpetuity provides an annual cash flow of ₹ 8,000. If the required rate of return is 8% p.a., its present value is:

CA Foundation · Quantitative Aptitude · MTP · September 2026
A perpetuity provides an annual cash flow of ₹ 8,000. If the required rate of return is 8% p.a., its present value is:
(A) A. ₹ 64,000
(B) B. ₹ 80,000
(C) C. ₹ 1,00,000
(D) D. ₹ 1,08,000

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. ₹ 1,00,000

Topics: Part-A: Business Mathematics

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