Corporate Finance quizzes
How businesses value future cash flows and use interest rates to compare financial choices.
1 quiz
50 questions
Quizzes in this topic
Try a question
From Corporate Finance: Why Money Today Beats Money Tomorrow
A perpetuity pays 50 every year forever. At a 5% discount rate, what is it worth today?
- An infinite amount
- 1,000
- 2,500
Show the answer
Answer: 1,000
A perpetuity's value is the payment divided by the rate: 50 divided by 0.05 is 1,000, because distant payments are worth almost nothing today.
A few questions at a time, before your apps
BrainTok asks a few questions from quizzes like these before the apps you choose open, so your screen time turns into learning. For iPhone.
Join the beta