Growing Perpetuities Oasis Healthtec has been working on a ring that measures blood pressure, heart rate variability and heart rate continuously when worn. It is charged through kinetic energy.

The ring has been cleared for manufacture and development. Oasis Healthtec anticipates selling 2,000 units in the first year at a price of €200 per ring. Because of the licensing deal Oasis Healthtec has agreed with the manufacturers, the first cash flow will be received two years from today. Subsequent annual cash flows will grow at 5 per cent in perpetuity. What is the present value of the ring if the discount rate is 10 per cent?