Multiple Choice
The present value of a perpetuity decreases when the ________ decreases.
A) number of investment periods
B) annual discount rate
C) perpetuity payment
D) both B and C
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q111: A perpetuity will grow at the rate
Q112: A perpetuity is an investment that continues
Q113: You have just purchased an investment that
Q114: The expected after-tax cash flow from an
Q115: Consider an investment that has cash flows
Q116: How much money must you pay into
Q117: The present value of an annuity increases
Q118: A commercial bank will loan you $17,500
Q120: Your parents are planning to retire in
Q121: Your company has received a $50,000 loan