A Perpetuity Differs from an Annuity Because

Multiple Choice

A perpetuity differs from an annuity because:

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.