Which of the Following Statements Regarding Perpetuities Is FALSE

question 36

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 occurs 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:

Evergreen

Plants that maintain their green foliage throughout the year, regardless of seasons.

Angiosperms

Plants that bear flowers and generate seeds that are contained within fruits, making up the largest variety of terrestrial plants.

Animal Fertilization

The process by which sperm from a male and ovum from a female combine to form a zygote, leading to the development of a new organism.

Monocot

Flowering plant in which the embryo has one cotyledon.