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(Related to Checkpeint 6.5). (Present value of a growing perpetuity) What is the peesent value of a perpetual strearn of cash tions that pays $1,000
(Related to Checkpeint 6.5). (Present value of a growing perpetuity) What is the peesent value of a perpetual strearn of cash tions that pays $1,000 at the end of year one and the annua cash flows grow at a tate of 3% per year indefintely, it the appropriate discourt fate is 9% ? What if the approprate dscount rate is Ths? a. If the acpropriate discout tate is 9%, the present value of the growing perpetuly is S (Raund to the nearest cert) b. If the aporophate discount rate is 7 , the preserit value of the growng perpeluaty is 1 (Round to the neareat cent.)
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