Asked by
Mohammad Abdullah Ansari
on Dec 02, 2024Verified
A steady stream of earnings is:
A) capitalized at its future value as a perpetuity.
B) amortized at its present value as a perpetuity.
C) capitalized at its present value as a perpetuity
D) amortized at its present value as a perpetuity
Capitalized
Expenses or costs that are added to the value of an asset and expensed over time through depreciation or amortization, rather than immediately.
Perpetuity
An annuity that pays a fixed amount of money for an infinite amount of time.
Amortized
The process of gradually paying off a debt over time in regular installments of interest and principal sufficient to repay the loan fully by its maturity date.
- Master the basic definitions and peculiarities of annuities, perpetuities, and debt with amortization.
Verified Answer
AM
Learning Objectives
- Master the basic definitions and peculiarities of annuities, perpetuities, and debt with amortization.