Which of the following statements regarding perpetuities is FALSE?
A)To find the value of a perpetuity one cash flow at a time would take forever.
B)A perpetuity is a stream of equal cash flows that occurs at regular intervals and lasts forever.
C)PV of a perpetuity =
D)One example of a perpetuity is the British government bond called a consol.

Question

Which of the following statements regarding perpetuities is FALSE?
A)To find the value of a perpetuity one cash flow at a time would take forever. 
B)A perpetuity is a stream of equal cash flows that occurs at regular intervals and lasts forever. 
C)PV of a perpetuity = 
D)One example of a perpetuity is the British government bond called a consol.

Quizplus · Accepted Answer

The statement "PV of a perpetuity = 11ea7fd1_1f45_5059_99dd_c9cbe3b32627_TB1622_00" is incorrect as it appears to be a random code or error message, rather than a true statement about perpetuities. The other statements about perpetuities are true: they are a stream of equal cash flows that occur at regular intervals and last forever, and examples include consols. While it may be impractical to calculate the value of a perpetuity one cash flow at a time, there are formulaic ways to find their present values.

Which of the Following Statements Regarding Perpetuities Is FALSE