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w6 11/12 (Related to Checkpoint 6.5)(Present value of a growing perpetuity)What is the present value of a perpetual stream of cash flows that pays $2

w6 11/12 (Related to Checkpoint 6.5)(Present value of a growing perpetuity)What is the present value of a perpetual stream of cash flows that pays $2 comma 500 at the end of year one and the annual cash flows grow at a rate of 4% per year indefinitely, if the appropriate discount rate is 13%? What if the appropriate discount rate is 11%?

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