You are evaluating an investment that will pay $70 in 1 year, and it will continue to make payments at annual intervals thereafter, but the payments will grow by 3 % forever. a. What is the present value of the first $70 payment if the discount rate is 8 %?

b. How much cash will this investment pay 100 years from now?

c. What is the present value of the 100th payment? Again use an 8 % discount rate.

d. What is the present value of the entire growing stream of perpetual cash flows?