What is the present value of a perpetual stream of cash flows that pays $7,500 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 13%? What if the appropriate discount rate is 11%?

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Part 1

a.If the appropriate discount rate is 13%, the present value of the growing perpetuity is$

(Round to the nearestcent.)

Part 2

b.If the appropriate discount rate is 11%, the present value of the growing perpetuity is$

(Round to the nearest cent.)