(Present value of a growing perpetuity). What is the present value of a perpetual stream of cash flows that pays $3000 at the end of year one and the annual cash flow's grow at a rate of 4% per year indefinitely, if the appropriate discount rate is 9%? What if the appropriate discount rate is 7%?
a. If the appropriate discount rate is 9%, the present value of the growing perpetuity is $_____.
b. If the appropriate discount rate is 7% the present value of the growing perpetuity is $_____.