A stream of equal cash flows received at set time intervals is called
A)an annuity.
B)the present value cash flow.
C)discounted cash flows.
D)continuing cash flows.

Question

Quizplus · Accepted Answer

A stream of equal cash flows received at set time intervals is called an annuity. An annuity can be further classified as an ordinary annuity or an annuity due depending on whether the cash flows are received at the end or the beginning of each period. Annuities are commonly used in financial planning and investment analysis to evaluate the future or present values of a series of cash flows.

A Stream of Equal Cash Flows Received at Set Time