Problem 4-14 Calculating Perpetuity Values The Perpetual Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $11,500 per year forever a. If the required return on this investment is 4.5 percent, how much will you pay for the policy? (Round your answer to 2 decimal places, e.g. 32.16.) b. Suppose the Perpetual Life Insurance Co told you the policy costs $250,000. At what discount rate would this be a fair deal? (Enter your answer as a percent rounded to 2 decimal places. e.g.. 32.16.) Present value