An annuity stream of cash flow payments is a set of: equal cash flows occurring each time period over a fixed length of time. equal cash flows occurring each time period forever. either equal or varying cash flows occurring at set intervals of time for a fixed period. time that go on forever. arbitrary cash flows occurring each time period for no more than 10 years.
Answer
The correct option is A.
An annuity is an equal stream of cash flows occuring for a fixed
period of time at a given interest rate.This annuity's present
value or future value etc is then calculated by the managers for
decision making purposes etc.Stream of cash flows occuring forever
is termed as perpetuity.