Which of the Following Statements Regarding Growing Annuities Is FALSE

question 84

Multiple Choice

Which of the following statements regarding growing annuities is FALSE?

• A) A growing annuity is a stream of N growing cash flows, paid at regular intervals.
• B) We assume that g < r when using the growing annuity formula.
• C) PV of a growing annuity = C ×
• D) A growing annuity is like a growing perpetuity that never comes to an end.

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