Which of the following are characteristics of a perpetuity?
A. A perpetuity is a stream of unequal cash flows.
B. The value of a perpetuity is equal to the sum of the present value of its expected future cash flows.
C. The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the discounted value of its more distant (in the future) cash flows.
D. The value of a perpetuity cannot be determined.
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Home » Business » Which of the following are characteristics of a perpetuity? A. A perpetuity is a stream of unequal cash flows. B. The value of a perpetuity is equal to the sum of the present value of its expected future cash flows. C.