Home
Flashcards
Preview
Finance Chapter 4
Home
Get App
Take Quiz
Create
Differentiate between two types of cash flows.
Inflows are positive cash flows (+)
Outflows are negative cash flows (-)
What is the difference in a Perpetuity and an Annuity?
Annuities have a
finite
series of cash flows. A Perpetuity has an
infinite
series of cash flows.
What is a Growing Perpetuity and a Growing Annuity?
When cash flows do not remain the same and grow at a constant rate.
g = growth rate of cash flows
What do T and
t
represent?
T = Time of last cash flow
t
= Time of 1st cash flow
Author
Chas
ID
337768
Card Set
Finance Chapter 4
Description
Finance Chapter 4
Updated
2018-02-02T18:37:51Z
Show Answers
Home
Flashcards
Preview