ANSWERS TO REVIEW QUESTIONS

The PVIFA factors for an ordinary annuity can be converted for use in calculating an annuity due by multiplying the PVIFAi%,n by 1 + i. 4-12. A perpetuity is an infinite-lived annuity. The factor for finding the present value of a perpetuity can be found by dividing the discount rate into 1.0. ................
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