(Present value of a growing perpetuity)What is the present value of a perpetual stream of cash flows that pays

$4,500

at the end of year one and the annual cash flows grow at a rate of

3%

per year indefinitely, if the appropriate discount rate is

11%?

What if the appropriate discount rate is

9%?

Question content area bottom

Part 1

a.If the appropriate discount rate is

11%,

the present value of the growing perpetuity is

$enter your response here.

(Round to the nearest cent.)

Part 2

b.If the appropriate discount rate is

9%,

the present value of the growing perpetuity is

$enter your response here.

(Round to the nearest cent.)