The present value of a $25,000 perpetuity at a 14 percent discount rate is

A. 178,571
B. 285,000
C. 350,000
D. 219, 298

285,000

To calculate the present value of a perpetuity, you need to use the formula:

Present Value = Payment / Discount Rate

In this case, the payment is $25,000 and the discount rate is 14 percent or 0.14 in decimal form.

So, to find the present value, simply divide the payment by the discount rate:

Present Value = $25,000 / 0.14
= $178,571.43

Therefore, the present value of a $25,000 perpetuity at a 14 percent discount rate is approximately $178,571.

Hence, the correct answer is A. 178,571.

To calculate the present value of a perpetuity, you can use the following formula:

PV = A / r

Where PV is the present value, A is the annual payment, and r is the discount rate.

In this case, the annual payment is $25,000 and the discount rate is 14%.

PV = $25,000 / 0.14

Now we can calculate the present value using a calculator or by dividing the annual payment by the discount rate:

PV = $178,571

Therefore, the correct answer is A. 178,571.