Which of the following statements is correct?a.The first cash flow in an ordinary annuity starts at time zero.b.The first cash flow in an annuity due starts at maturity.c.Present value and future value are always the same.d.None of them.e.The first cash flow in an annuity due starts at time zero.

Which of the following statements is true regarding the time value of money?a.Cash flows may arrive till infinity.b.Future value is always lower than the present value.c.Cash flows always have to be even.d.Cash flows cannot be negative.e.All of them.

Which of the following statements regarding the timeline is FALSE? a. The $5000 below date 1 is the payment you will receive at the end of the first year. b. None of them. c. Date 1 is one year from now. d. The $5000 below date 2 is the payment you will receive at the beginning of the second year. e. Date 0 represents today.

Which of the following statements regarding growing perpetuities is FALSE?a.PV of a growing perpetuity = C/(r-g)b.A growing perpetuity is a cash flow stream that occurs at regular intervals and grows at a constant rate forever.c.To find the value of a growing perpetuity one cash flow at a time would take forever.d.None of them.e.We assume that r < g for a growing perpetuity.

5. Develop fundamental concepts of Annuity6. Calculate Future and Present value of Annuity7. Calculate Present Value of Perpetuities8. Valuing mixed cash flow stream

Which of the following statements regarding perpetuities is FALSE?a.PV of a perpetuity = r/Cb.None of them.c.To find the value of a perpetuity one cash flow at a time would take forever.d.A perpetuity is a stream of equal cash flows that occurs at regular intervals and lasts forever.e.One example of a perpetuity is the British government bond called a consol.