What is the present value of a perpetual stream of cash flows that pays $7,000 at the end of year one and the annual cash flows grow at a rate of 4% per yearindefinitely, if the appropriate discount rate is 11%? What if the appropriate discount rate is 9%?

a.If the appropriate discount rate is 11%, the present value of the growing perpetuity is$____. (Round to the nearestcent.)