Which of the following is TRUE? The present value of an annuity at t=0 requires us to know the cash flow at t=0. Growing perpetuities must have a growth rate less than its discount rate. The discount rate must be greater than the growth rate when computing the present value of a growing annuity. The annuity formula simplifies to the perpetuity formula because at very large N, the present value converges to 1.

Which of the following is TRUE? The present value of an annuity at t=0 requires us to know the cash flow at t=0. Growing perpetuities must have a growth rate less than its discount rate. The discount rate must be greater than the growth rate when computing the present value of a growing annuity. The annuity formula simplifies to the perpetuity formula because at very large N, the present value converges to 1