Ch 4 - Time Value of Money: Valuing Cash Flow Streams Flashcards Preview

MOS 2310: Finance > Ch 4 - Time Value of Money: Valuing Cash Flow Streams > Flashcards

Flashcards in Ch 4 - Time Value of Money: Valuing Cash Flow Streams Deck (6)
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1

stream of cash flows

a series of cash flows lasting several periods

2

perpetuity

A stream of equal cash flows that occurs at regular intervals and lasts forever.

3

consol

A bond that promises its owner a fixed cash flow every year,forever.

4

annuity

A stream of equal cash flows arriving at a regular interval and ending after specified time period.

5

growing perpetuity

A stream of cash flows that occurs at regular intervals and grows at a constant rate forever

6

growing annuity

A stream of cash flows, growing at a constant rate and paid at regular intervals,that end after a specified number of periods