Which of the Following Statements Regarding Perpetuities Is False

question 45

Multiple Choice

Which of the following statements regarding perpetuities is false?

• A) To find the value of a perpetuity one cash flow at a time would take forever.
• B) A perpetuity is a stream of equal cash flows that occur at regular intervals and lasts forever.
• C) PV of a perpetuity =
• D) One example of a perpetuity is the British government bond called a consol.

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Definitions:

Reserved Capacity

A business strategy where a portion of production capability or service availability is set aside for a particular customer or project.

Revenue Management

Is the practice of strategically controlling inventory and pricing to maximize revenue, commonly used in industries like hotels, airlines, and hospitality.

Available Supply

The quantity of goods or materials in stock that is ready to be sold or distributed.

Maximize Profits

Maximizing profits is the strategic goal of increasing a company's earnings to its highest possible level by optimizing revenue streams and reducing costs.