Question 24
For a simple perpetuity, its present value increases if
First payment decreases
Discount rate increases
Payments grow over time
Payments are delayed over time
For a simple perpetuity, its present value increases if
First payment decreases
Discount rate increases
Payments grow over time
Payments are delayed over time
Correct answer
Payments grow over time
Question 24 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 26 Oct 2025, in the September 2025 term (IIT M DEGREE AN EXAM QDB2 26 Oct 2025). It carries 4 marks.