Pelican Corporation is planning to invest $12,000 at the beginning of each of the next eight years. This form of cash flow pattern is known as a(n) _____.

Question

Quizplus · Accepted Answer

An annuity due is characterized by consistent payments made at the beginning of each period. Since Pelican Corporation plans to invest $12,000 at the start of each year, this matches the definition of an annuity due.

Pelican Corporation Is Planning to Invest $12,000 at the Beginning