Please help with the following problem:

What is the present value of the following cash stream: A

consulting firm that is for sale has an annual operating cash flow of $2,000,000

assuming no future growth in cash flow, what is the value of this business at a

50% cost of capital. What would be the maximum price that you would pay for

that firm as an acquisition with no growth? What would be the valuation if you

assumed that the sellers put into place strategies that would generate a 10%

growth rate in cash flow?