Perpetuity Theory Question

Give a TRUE/FALSE answer for each of the following statements and in each case justify your answers.

Question 1

A) A perpetuity paying $2,000 per year is currently valued at $80,000. This implies that the one-year interest rate is 4%

B) A perpetuity pays its initial cash flow of C today and then pays a cash flow of C at the end of every year from now onwards. If the annual interest rate is r, the present value of this is C/r

C) the annual interest rate is 5%. Perpetuity with growth has an initial cashflow of $400 to be paid in 1 year. Its present value is $10,000. This must mean that the growth rate of the cashflows is 1%.