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You are considering a annuity which pays C per year. Under which of the following scenarios does this perpetuity have the highest present value? (a)

You are considering a annuity which pays C per year. Under which of the following scenarios does this perpetuity have the highest present value?

(a) r = 1%.

(b) r = 2%.

(d) It depends on the term of the annuity.

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