Perpetuities are also called annuities with an extended or unlimited life. based on your understanding of perpetuities, answer the following questions. which of the following are characteristics of a perpetuity? check all that apply.
(a) the principal amount of a perpetuity is repaid as a lump-sum amount
(b) in a perpetuity, returns-m the form of a series of identical cash flows-are earned.
(c) a perpetuity is a series of regularly timed, equal cash flows that is assumed to continue indefinitely into the future.
(d) a perpetuity continues for a fixed time period.

Precision dyes is analyzing two machines to determine which one it should purchase. the company requires a rate of return of 15 percent and uses straight-line depreciation to a zero book value over the life of its equipment. ignore bonus depreciation. machine a has a cost of $462,000, annual aftertax cash outflows of $46,200, and a four-year life. machine b costs $898,000, has annual aftertax cash outflows of $16,500, and has a seven-year life. whichever machine is purchased will be replaced at the end of its useful life. which machine should the company purchase and how much less is that machine's eac as compared to the other machine's

Boone brothers remodels homes and replaces windows. ace builders constructs new homes. if boone brothers considers expanding into new home construction, it should evaluate the expansion project using which one of the following as the required return for the project?

Paid-in-capital in excess of par represents the amount of proceeds a. from the original sale of common stock b. in excess of the par value from the original sale of common stock c. at the current market value of the common stock d. at the curent book value of the common stock