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Which of the following statements regarding annuities and perpetuities is correct assuming positive interest rates? The present value of a perpetuity cannot be computed whereas

Which of the following statements regarding annuities and perpetuities is correct assuming positive interest rates?

The present value of a perpetuity cannot be computed whereas its future value can be computed.

An ordinary annuity is worth more than an annuity due, given equal annual cash flows for 10 years and the same annual interest rate.

A perpetuity is worth more than an annuity, given equal annual cash flows and the same annual interest rate.

Perpetuities are finite but annuities are not.

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