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Please explain as well! Thank you! Question 1 1 pts Which one of these statements related to growing annuities and perpetuities is most CORRECT? O
Please explain as well! Thank you!
Question 1 1 pts Which one of these statements related to growing annuities and perpetuities is most CORRECT? O The future value of an annuity will decrease if the growth rate is increased In computing the present value of a growing annuity, you discount the cash flows using the growth rate as the discount rate. You can compute the present value of a growing annuity but not a growing perpetuity. An increase in the rate of growth will decrease the present value of an annuity. The present value of a growing perpetuity will decrease if the discount rate is increasedStep by Step Solution
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