Business, 25.03.2020 23:26 hastlingc

Perpetuities are also called annuities with an extended, or unlimited, life. Based on your understanding of perpetuities, answer the following questions. Which of the following are characteristics of a perpetuity?

a. The value of a perpetuity cannot be determined.
b. The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the discounted value of its more distant (in the future) cash flows.
c. The value of a perpetuity is equal to the sum of the present value of its expected future cash flows.
d. A perpetuity is a stream of regularly timed, equal cash flows that continues forever.

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Perpetuities are also called annuities with an extended, or unlimited, life. Based on your understan...

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