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What is the difference between an annuity and a perpetuity? Multiple choice question. A perpetuity is an annuity with a set number of cash flows.
What is the difference between an annuity and a perpetuity?
Multiple choice question.
A perpetuity is an annuity with a set number of cash flows.
A perpetuity is an annuity with steadily decreasing cash flows.
A perpetuity is an annuity with payments that increase as time progresses.
An annuity has a fixed number of cash flows while a perpetuity has unending cash flows.
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
