Lumin Telecomm produces specialized telecommunication equipment and has made losses each year over the three years it has been in existence—it has an accumulated net operating loss of \($180\) million. In the most recent year, the firm reported an operating loss of \($90\) million on revenues of \($1\) billion. If you expect the growth rate in revenues to be 20% a year for the next five years, and the pretax operating margin to be

−6% next year, −3% two years from now, 0% the year after, 6% in four years, and 10% in five years (tax rate = 40%), estimate:

a. The revenues and pretax operating income each year for the next five years.

b. The taxes you would have to pay and your after-tax operating income each year for the next five years.