You are running a hot Internet company. Analysts predict that its earnings will grow at 40% per year for the next three years. Your company has just announced earnings of $2 million for the current year. a. What is the present value of future earnings for the next three years if the interest rate is 8%? (Assume all cash flows occur at the end of the year.) b. As competition increases, after the third year, earnings growth is expected to slow to 5% per year and continue at that level forever. The interest rate remains the same. What is the value of the company in three year. (Hint: first perpetuity payment occurs in year 4) c. What is the present value of the company today