Question: Answer is not 144444.4 it marked it as incorrect. (Present value of a growing perpetuity) Your firm has taken on cost saving measures that will

Answer is not 144444.4 it marked it as incorrect. (Present value

Answer is not 144444.4 it marked it as incorrect.

(Present value of a growing perpetuity) Your firm has taken on cost saving measures that will provide a benefit of $13,000 in the first year. These cost savings will decrease each year at a rate of 2 percent forever. If the appropriate interest rate is 7 percent, what is the present value of these savings? The present value of these cost savings is $144444.4 (Round to the nearest cent.)

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