## Suppose an asset provides annual risk-free cash flows at the end of each year in perpetuity. The risk-free rate is 5%. The first cash flow is $200, and the cash flows grow at 4% per year. What is the value of this perpetuity?

10. Question 10 Suppose an asset provides annual risk-free cash flows at the end of each year in perpetuity. The risk-free rate is 5%. The first cash flow is $200,…