1. You pay $300 today. Thereafter, 1 year from today, youll begin to receive a perpetuity. The first perpetuity payment will be $9.00. Subsequent perpetuity payments will decline each year by 1% per year. The IRR is 0.02.

From the information stated, do you believe that the simple sum of the inflows associated with the perpetuity is:

A) Greater than $300

B) Less than $300

C) Equal to $300

D) Indeterminate (i.e. impossible to determine)