Question
If the present value (PV) of an ordinary perpetuity and the discount rate are both positive: a) the present value of an perpetuity due (with
If the present value (PV) of an ordinary perpetuity and the discount rate are both positive:
a) the present value of an perpetuity due (with the same discount rate) will be incomparable to that of the ordinary perpetuity .
b) the present value of an perpetuity due (with the same discount rate) will be less than that of the ordinary perpetuity .
c) the present value of an perpetuity due (with the same discount rate) will be greater than that of the ordinary perpetuity .
d) the present value of an perpetuity due (with the same discount rate) will be equal to that of the ordinary perpetuity .
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