Suppose that the business you own would give you an annual income of $$20,000,$ forever. The best use of capital you have is expected to generate a return equivalent to $5\%$ of the capital invested a year.

$($i$)$ At what price would you sell your business today?

Annual income $=$ $$20,000$

$($ii$)$ If the annual income $$20,000$ is expected to grow at $3\%$ a year, at what price would you sell the business today?