The assumption that the annual income is constant over time is not important because:
A) the total present value of the lifetime income stream is independent of the future income stream.
B) the future income streams have a small effect on the total present value of the lifetime income stream.
C) the total present value of the lifetime income stream is highly dependent on future income streams.
D) the future income streams have a significant effect on the total present value of the lifetime income stream.
E) the future income streams for a particular time period is equal to the total present value of the lifetime income stream.
Correct Answer:
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