The present value of the perpetuity can be calculated using the formula PV = X/ (r – g), where PV is the present value, X is the cash flow per period, r is the discount rate, and g is the growth rate.
In this case, the cash flow per period is $10,000, the discount rate is 10.2%, and the growth rate is the rate of inflation, which is 2%.
Using these values, the present value of the perpetuity can be calculated as follows: