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A perpetuity is a stream of cash flows that occur at regular intervals (e.g., annually or monthly) and last forever. The present value of such
A perpetuity is a stream of cash flows that occur at regular intervals (e.g., annually or monthly) and last forever. The present value of such a cash flow stream
Is very difficult to compute since it involves discounting an infinite number of future cash flows. |
Can be computed by simply dividing the cash flow received each period by the discount rate. |
Cannot be computed |
Both a and c are correct |
None of the above |
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