ohn is studying for law and he estimates that after graduaton at the end of 4 years he will make $150K in his first year (year-end), which will then grow at a constant rate of 7% per year after that. For simplicity just assume that John can live a long life and never retires, so we can consider his income growth to be constant forever. If the cost of money to John is 10% per year, what is the worth of John's economic life today? [Hint: use the Gordon Growth formula first] $1.02 million $1.46 million $5.00 million $3.42 million