Q7: What is the value of a perpetuity of P100 per year if the discount rate is 5%, 7%, 11%? Answer: P value if 5% = P2,000.00, P value if 7% = P1,428.57, P value if 11% = P909.09 Q8: What is the value of a perpetuity of P100 per year if the discount rate is 5% and the cash flows do not begin until two years from now? Answer: P = P1,814.05

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