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

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$2-7$: 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$