Which of the following is a special case of annuity, where the stream of cash flows continues forever?

Related Mcqs:

1. In alternative investments, the constant cash flow stream is equal to initial cash flow stream in the approach which is classified as __________?

   A. greater annual annuity method
   B. equivalent annual annuity
   C. lesser annual annuity method
   D. zero annual annuity method

2. In which of the following type of annuity, cash flows occur at the beginning of each period?

   A. Ordinary annuity
   B. Annuity due
   C. Perpetuity
   D. None of the given options

3. Real rate expected cash flows and nominal rate expected cash flows must be______________?

   A. Accelerated
   B. Equal
   C. Different
   D. Inflated

4. Cash flows occurring with more than one change in sign of cash flow are classified as________?

   A. Non-normal cash flow
   B. Normal cash flow
   C. Normal costs
   D. Non-normal costs

5. The cash flows occurring with more than one change in sign of cash flow are classified as __________?

   A. non-normal cash flow
   B. normal cash flow
   C. normal costs
   D. non-normal costs

6. Which of the following refers to the cash flows that result from the firm‟s day-to-day activities of producing and selling?

   A. Operating Cash Flows
   B. Investing Cash Flows
   C. Financing Cash Flows
   D. All of the given options

7. Which of the following is a series of constant cash flows that occur at the end of each period for some fixed number of periods?

   A. Ordinary annuity
   B. Annuity due
   C. Perpetuity
   D. None of the given options

8. An annuity with an extended life is classified as_____________?

   A. Extended life
   B. Perpetuity
   C. Deferred perpetuity
   D. Due perpetuity

9. A project whose cash flows are more than the capital invested for rate of return then the net present value will be _________?

   A. positive
   B. independent
   C. negative
   D. zero

10. The investors who want cash flows in near terms shows preference for__________?

    A. interest portion of RIAPS
    B. interest portion of STORI
    C. interest portion of STRIPS
    D. interest portion of bonds