Alysha has been offered two perpetuities: Grow and Shrink. Grow promises her $103 in one year and an annual cash flow that will increase by 4 percent per year forever. Shrink, in contrast, promises her $1,070 in one year but the annual cash flow will decline by 2 percent forever. If her opportunity cost is 5 percent per year and both annuities cost $1,070.

Which annuity offers her the greater value?(Round answers to 2 decimal places, e.g. 125.12.)

Grow exceeds the cost by$:

Shrink exceeds the cost by$: