Your consulting firm will produce cash flows of $115,000 this year, and you expect cash flow thereafter to keep pace with any increase in the general level of prices. The interest rate currently is 6.3%, and you anticipate inflation of about 2.3%.

Your consulting firm will produce cash flows of $115,000 this year, and you expect cash flow thereafter to keep pace with any increase in the general level of prices. The interest rate currently is 6.3%, and you anticipate inflation of about 2.3%. a. What is the present value of your firm's cash flows for years 1 through 5 ? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. How would your answer to (a) change if you anticipated no growth in cash flow? (Do not round intermediate calculations. Round your answer to 2 decimal places.)