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Which of the Following Statements Regarding Growing Annuities Is False

Question 18

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 × 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.
D) A growing annuity is like a growing perpetuity that never comes to an end.

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