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Tick all those statements on perpetuities that are correct. a . The present value of a perpetuity is infinite as all the payments add up
Tick all those statements on perpetuities that are correct.
a The present value of a perpetuity is infinite as all the payments add up to infinity.
b If I multiply the present value of a perpetuity with the interest rate then I get the value of a single payment of the cashflow stream.
c The present value of a perpetuity increases if the interest rate increases.
d A perpetuity describes a constant cashflow at the end of each year that continues infinitely long.
e The present value value of a perpetuity is independent of the interest rate.
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