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

Question

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.

Quizplus · Accepted Answer

D) An annuity does end.

Which of the Following Statements Regarding Growing Annuities Is FALSE