Please answer $1$ and $2$

You own a gas pipeline that requires no maintenance and will produce S2 million of revenue next year. Unfortunately: after the first year the volume of gas (and thus the revenue) is expected to decline by 2.0% per year. a. Ifthe discount rate is and the pipeline lasts forever: what is it wofih today? b _ Ifthe pipeline is to be abandoned at the end of 20 years: what is it wonh today? 2 You have been asked to value a new firm: CloudStore: that produces intemet-based memory storage devices. After a careful analysis of all available information: you estimate that Cloudstore will generate the following cash flows over the next five years (starting one year from now) Year 2 4 5 Cash Flow (S millions) soo 750 3,000 After this you expect the cash flows to grow at 6% for every year after year The discount rate for cash flows with comparable risks to Cloudstore is 15%. a. What is the present value of the cash flows that are expected from year 1 to 4? What is the present value of the cash flows starting in year (hint: use the growmg perpetuity formula). Up to how much would you be willing to pay to acquire this firm? The valuation you just did m c) implicitly assumes that Cloudstore keeps finding positive NPV projects to Invest in. Suppose you thought that is not be the case and wanted to know what Cloudstore is wofih when there is no growth after year 5 _ To estimate this value: suppose that Cloudstore's cashflows from 1-4 are unchanged. The cash flow in year 5 IS 2000 instead of 12500 (the cash flow IS higher in year because they stop investing in new projects) and then the same level (i.e.: 2000) every year after that. What is the value of Cloudstore in this scenario? How much of the value that you estimated in c) is due to the new positive NPV projects that were expected to be taken from year onwards?