What is the present value of a series of $5,000 end-of-the-year cash f

What is the present value of a series of $5,000 end-of-the-year cash flows to be received forever if the required rate of return is 6.00% per year and the first cash flow is one year from today?

A) $8,333.33
B) $83,333.33
C) $300.00
D) This question cannot be answered because there is no time period provided.

ANSWER

B
Explanation: B) PV = PMT/r = %4,000/.06 = $83,333.33