You are running a hot Internet company. Analysts predict that its earnings will grow at 20 %

per year for the next five years. Afterthat, as competitionincreases, earnings growth is expected to slow to 6 %

per year and continue at that level forever. Your company has just announced earnings of $ 1

million. What is the present value of all future earnings if the interest rate is 7 %?

(Assume all cash flows occur at the end of theyear.)