Which factor can lead to an unrealistic perpetuity growth rate?

The selection of assuming growth rates consistently above GDP as a factor that can lead to an unrealistic perpetuity growth rate is accurate because it emphasizes the relationship between expected growth rates and economic reality. When growth rates are projected to exceed the growth of the overall economy, typically measured by GDP, it sets an unsustainable expectation.

In general, long-term growth rates should realistically align with GDP growth because businesses cannot consistently outpace the economy indefinitely. An unrealistic perpetuity growth rate can result from overestimating a company's ability to maintain high growth levels when, in reality, market saturation, competition, and economic cycles will impose limitations.

While other options present their own concerns in different contexts, they do not directly relate to the sustainability of growth rates concerning the broader economy in the same way. High inventory levels, minimal market volatility, or conservative cash flow projections might influence a company's financial health or outlook but do not inherently imply unrealistic long-term growth assumptions in the same manner as exceeding GDP growth does.