Question: 2 - 7 : ABC Corporation expects to earn $ 2 0 0 , 0 0 0 at the end of the year and projects

2-7: ABC Corporation expects to earn $200,000 at the end of the year and projects a growth in earnings of 5 percent per year. If k is 10 percent, what is the present value of the earnings if it expects the constant growth rate of 5% forever?
$2,000,000
$3,000,000
$400,000
2-7: ABC Corporation expects to earn $200,000 at the end of

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