Question: What is the difference between the present value of a perpetual payment of $5,000 at the end of each year and the present value of

What is the difference between the present value of a perpetual payment of $5,000 at the end of each year and the present value of a perpetual annual cash flow stream that pays $5,000 at the end of year one and grows at 2% p.a.? Assume an interest rate of 8.5% p.a. compounded annually. State the absolute value of the difference. Round final answers to 4 decimal places.

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