Scenario 1: Inflation is 2% per year and the interest rate is 8% per year. Your perpetuity project has cash flows that grow at 1% faster than inflation forever, starting with $20 next year.

Question 1: Based on the information from scenario 1, what is the real interest rate? Enter your answer to 4 decimal places without the % sign. Example 6.78% enter as .0678.

Question 2: Based on the information from scenario 1, what is the present value of this project? Enter your answer to the nearest cent without the dollar sign. Example $343.58 enter as 343.58.