what is the present value of perpetual stream of cash flows

what is the present value of perpetual stream of cash flows that pays $10,000 at the end of year one amd then grows at a rate of 6% per year indefinitely? The rate of interest used to discount the cash flow is 9%

Solution

present value of perpetual stream = cash flow per year/(rate of interest - growth rate)

= 10,000/(9% -6%)

= 10,000/0.03

= $333,333.33 ..........ans