Which of the following is INCORRECT? A perpetuity is defined as a set of equal cash flows occurring at equal intervals of time for a specified period. The process of discounting is the inverse of the process of compounding. The choice of the proper mixture of debt and equity, used to finance a corporation, is also referred to as the the capital structure decision. Costs associated with the conflicts of interest between the managers and the shareholders of a corporation are called agency costs. The rate of return is also called the discount rate, the hurdle rate, and the opportunity cost of capital