The value of a firm can be defined as the total present value of the firm's future cash flows. [A] True [B] False An annuity stream where the payments occur forever is called a(n): [A] annuity due. [B]indemnity. [C] perpetuity. A perpetuity differs from an annuity because: [A] perpetuity payments vary with the rate of inflation. perpetuity payments vary with the market rate of interest. [C] perpetuity payments never cease. Discounting cash flows involves: [A] taking the cash discount offered on trade merchandise. [B] discounting only those cash flows that occur at least ten years in the future. [C] adjusting all expected future cash flows to their current value. An annuity: [A] is a stream of payments that fluctuate with current market interest rates. [B]is a stream of equal payments that occur in equal periods of time for a finite period. [C] has a longer life span than a perpetuity. The yield to maturity on a bond is the rate: [A] computed as annual interest