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What is the present value of a perpetual stream cash flows that pays $4000 at the end of year one and the annual cash flows grow at a rate of 2% per year indefinitely, if the appropriate discount rate is 11%? What if the appropriate disscount rate is 9%?

A) If the appropriate discount rate is 11%, the present value of the growing perpetuity is $_____? (Round to nearest cent)

B) If the appropriate discount rate is 9%, the present value of growing perpetuity is $_____? (Round to nearest cent)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92840944

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