Present value of growing perpetuity

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Reference no: EM131855856

(Present value of a growing perpetuity). What is the present value of a perpetual stream of cash flows that pays $3000 at the end of year one and the annual cash flow's grow at a rate of 4% per year indefinitely, if the appropriate discount rate is 9%? What if the appropriate discount rate is 7%?

a. If the appropriate discount rate is 9%, the present value of the growing perpetuity is $_____.

b. If the appropriate discount rate is 7% the present value of the growing perpetuity is $_____.

Reference no: EM131855856

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