1). Calculate the present value (PV) of an annuity stream of five annual cash flows of $1,160, with the first cash flow received in one year, assuming a discount rate of 10.6 percent.

2). What is the present value of a perpetual stream of annual cash flows, with the first cash flow of $135 to be received in one year and with all subsequent cash flows growing at a rate of 3.2 percent, assuming a discount rate of 8.3 percent?