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Perpetuity computation: Compute the present value of a $450 (next year first payment) perpetuity using an 9% discount rate. a. Use the perpetuity formula. b.

Perpetuity computation: Compute the present value of a $450 (next year first payment) perpetuity using an 9% discount rate. a. Use the perpetuity formula. b. Using Excel compute the present value contribution of the first 100 years (compute the present value of each cash flow and sum the first 100 years) c. Do the same for the following 100 years (years 101-200). d. Do the same for the remaining 800 years.

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