18q. (Present value of a growing perpetuity)Your firm has taken on cost saving measures that will provide a benefit of

$10,000

in the first year. These cost savings will decrease each year at a rate of

3

percent forever. If the appropriate interest rate is

5

percent, what is the present value of these savings?

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Part 1

The present value of these cost savings is

$enter your response here.

(Round to the nearest cent.)