Which of the Following Is True About Perpetuities

question 10

Multiple Choice

Which of the following is true about perpetuities?

• A) All else equal, the present value of a perpetuity is higher when the periodic cash flow is higher.
• B) All else equal, the present value of a perpetuity is higher when the interest rate is lower.
• C) If two perpetuities have the same present value and the same interest rate, they must have the same cash flows.
• D) All of the above are true statements.

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Definitions:

Oligodendroglial Cell

A type of glial cell in the central nervous system responsible for the formation and maintenance of myelin sheaths around neurons.

Schwann Cell

A type of glial cell located in the peripheral nervous system that wraps around nerve fibers, forming the myelin sheath which speeds up electrical impulses.

Astrocyte

A type of glial cell in the brain that provides support and nutrition to neurons, maintains the blood-brain barrier, and plays a role in the repair and scarring process of the brain and spinal cord.

Efferent

Referring to nerve fibers that carry signals away from the central nervous system to effectors such as muscles and glands.