You have two assets and must calculate their values today based on their payment streams and required returns. Asset 1 has a required return of 11% and will produce a stream of $200 starting at year 1 and continuing indefinitely. Asset 2 has a required return of 7% and will produce an end-of-year cash flow of $1,200 in 1 year, $1,400 in 2 years, and $700 in 3 years.

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Part 1

The value of Asset 1 today is $ enter your response here. (Round to the nearest cent.)