What is the present value of a perpetual stream of cash flows that pays $8 comma 0008,000 at the end of year one and the annual cash flows grow at a rate of 44% per year indefinitely, if the appropriate discount rate is 1515%? what if the appropriate discount rate is 1313%?

Instructions are listed below.

Explanation:

Giving the following information:

Cash flows= $8,000

Grow at a rate of 4% per year indefinitely.

We need to find the present value using the following formula:

Present Value= periodic payment/ (i - g)

i= interest rate

g= growth rate

A) Interest rate= 15%

PV= 8,000/ (0.15 - 0.04)= $72,727.27

B) i= 13%

PV= 8,000/ (0.13 - 0.04)= $88,889

1. avoid them

2. a talk with them

3. ask someone you trust

4. ignore

5. call police

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are: