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Tick all those statements on perpetuities that are correct. O a. The present value value of a perpetuity is independent of the interest rate. O b. If I multiply the present value of a perpetuity with the interest rate then I get the value of a single payment of the cashflow stream. O c. A perpetuity describes a constant cashflow at the end of each year that continues infinitely long. Od. The present value of a perpetuity is infinite as all the payments add up to infinity. O e. The present value of a perpetuity increases if the interest rate increases.

Tick all those statements on perpetuities that are correct. O a. The present value value of a perpetuity is independent of the interest rate. O b. If I multiply the present value of a perpetuity with the interest rate then I get the value of a single payment of the cashflow stream. O c. A perpetuity describes a constant cashflow at the end of each year that continues infinitely long. Od. The present value of a perpetuity is infinite as all the payments add up to infinity. O e. The present value of a perpetuity increases if the interest rate increases.

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Tick all those statements on perpetuities that are correct. O a. The present value value of a perpetuity is independent of the interest rate. Ob. If I multiply the present value of a perpetuity with the interest rate then I get the value of a single payment of the cashflow stream. c. A perpetuity describes a constant cashflow at the end of each year that continues infinitely long. Od. The present value of a perpetuity is infinite as all the payments add up to infinity. e. The present value of a perpetuity increases if the interest rate increases.
Transcribed Image Text:Tick all those statements on perpetuities that are correct. O a. The present value value of a perpetuity is independent of the interest rate. Ob. If I multiply the present value of a perpetuity with the interest rate then I get the value of a single payment of the cashflow stream. c. A perpetuity describes a constant cashflow at the end of each year that continues infinitely long. Od. The present value of a perpetuity is infinite as all the payments add up to infinity. e. The present value of a perpetuity increases if the interest rate increases.
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