Question: A perpetuity differs from an annuity because: Question 3 Answer a . perpetuity cash flows vary with the rate of inflation. b . perpetuity cash
A perpetuity differs from an annuity because:
Question Answer
a
perpetuity cash flows vary with the rate of inflation.
b
perpetuity cash flows vary with the market rate of interest.
c
perpetuity cash flows are variable while annuity payments are constant.
d
perpetuity cash flows never cease.
e
annuity cash flows occur at irregular intervals of time.
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