topic 1 part 2

Question 1

a stream of cash flows with no end

Answer 1

perpetuity

Question 2

a stream of cash flows that grow
at a constant periodic rate, g, with no end.

Answer 2

growing perpetuity

Question 3

a level stream of regular payments that last for a fixed number of periods

Answer 3

annuity

Question 4

a constant growing stream of regular
payments that last for a fixed number of periods

Answer 4

growing annuity

Question 5

the one interest rate that sets the net
present value of the cash flows equal to zero

Answer 5

Internal Rate of Return (IRR)