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

12%

and will produce a stream of

$300

starting at year 1 and continuing indefinitely. Asset 2 has a required return of

12%

and will produce an end-of-year cash flow of

$1,300

in 1 year,

$1,500

in 2 years, and

$600

in 3 years.