Two companies company A and B are identical in their products and sales. For the next $10$ years sales revenue of A and $B$ will be $$100$ million per year. The operating expense for both companies is $$50$ million per year. Operating expenses are all paid right away in cash. Company $A$ is better at collecting payment for its sales and collects all the sales at the end of each year. Company B only collects $60\%$ of its sales in the current year. The remaining balance is collected at the end of the following two years. Also, operating expenses on sales revenue no longer exist after $10$ years. Ignore other costs and taxes. Both companies face a discount rate of $10\%$ per year.

$2$

a$)$ Draw a timeline $($or a table$)$ of the net cash flow of company A and its accounting net income each year for the next $10$ years. Note: accounting net income only concerns revenue and expenses.

b$)$ What is the valuation of company A$?($Hint: valuation is the present value of all the future cash flows at time zero; refer to chapter $5$ of the textbook for a review of present value$)$

c$)$ Draw a timeline $($or a table$)$ of the net cash flow of company $B$ and its accounting net income each year for the next $12$ years.

d$)$ "Because the net income of A and B is the same, the valuation of A and B is the same." Evaluate this statement with supporting calculations.