Question
Which of the following statements is incorrect? A) The future value of multiple cash flows is greater than the sum of the cash flows. B)
Which of the following statements is incorrect?
A) The future value of multiple cash flows is greater than the sum of the cash flows.
B) All the answers are correct except one.
C) If your investment in a small business venture will produce cash flows that increase by 15 percent every year for the next 25 years, then the cash flow stream is called a growing annuity.
D) If your investment pays the same amount at the end of each year for a period of 10 years, the cash flow stream is called an annuity due.
E) Any financial contract that calls for equally spaced and level cash flows over an infinite periods is called a perpetuity.
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