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? Check all that apply.

The value of a perpetuity is equal to the sum of the present value of its expected future cash flows.

The value of a perpetuity cannot be determined.

A perpetuity is a stream of regularly timed, equal cash flows that continues forever.

A perpetuity is a stream of unequal cash flows.

You just won the lottery. Congratulations! The jackpot is $$35,000,000,$ paid in eight equal annual payments. The first payment on the lottery jackpot will be made today. In present value terms, you really won $$assuming annual interest rate of $6\mathrm{.}50\%.$