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Which of the following statements is true of a perpetuity

A) A perpetuity has a fixed maturity

B) The present value of each payment made by a perpetuity is less than the previous payment

C) The present value of a perpetuity that pays $100 every year when the annual rate of discount is 5% is $1,000

D) The present value of a perpetuity that pays $200 every year when the annual rate of discount is 7% is $1,750

Financial Management, Finance

  • Category:- Financial Management
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