Present value of the perpetuity payment each year= annual
payment/discount rate
                                                                                   Â
            =
$2,263/0.065
                                                                                               Â
= $34,815.38
The first payment is made 16 years from today. In order to
calculate the present value of the perpetual payment of $2,263 made
16 years from today, the below formula is used: present value of
perpetuity payment/(1+ discount rate)^time
        =
$34,815.38/(1.065)^16
        = $34,815.38/
2.7390
        =
$12,710.98.
In case of any query, kindly comment on the solution.
