Investment A is a perpetuity Investment B is an annuity due

Investment A is a perpetuity. Investment B is an annuity due. All else equal, which investment do you choose? a. Investment A. b. Investment B. c. You are indifferent between the two investments.

Correct answer is option (a)

Reason:perpetuity is more valuable than either annuity due or ordinary annuity because market value of perpetutiy has to be higher than other two