22. Suppose upon graduation with your Economics degree you decide rather than taking a job, you will go into business for yourself. In particular, suppose you plan to take your inheritance from your long-lost Uncle and buy a bar that has just come up for sale. After looking over the bar's financial records for the last few years you are convinced that if you buy it you can earn a risk-free economic profit of $5000 each year for the rest of your life. Suppose you also know somehow that the interest rate will be 5% forever. Under these circumstances the value of the bar to you will be:
  1. $5,000.
  2. $25,000.
  3. $50,000.
  4. $100,000.
  5. $200,000.

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