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Which of these cannot be calculated? A. PV of a growing perpetuity B. FV of a...

Which of these cannot be calculated?

A. PV of a growing perpetuity

B. FV of a perpetuity

C. FV of an uneven series of cash flows

D. FV of a lump sum with continuous compounding

E. Perpetuity payments

Solutions

Expert Solution

Option (B) is correct

Future value (FV) of a perpetuity cannot be calculated. Perpetuity consists of infinite number of payments. Future value cannot be calculated for infinite payments.

jeff jeffy answered 2 years ago
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