Your company has a forecast net income of the following.

Year $1$: $$300,000$

Year $2$: $$500,000$

Year $3$: $$750,000$

Companies similar to yours have P$/$E ratios of $12.$ What is your company's terminal value?

Group of answer choices

$$9,000,000$

$$300,000$

$$1,550,000$

$$750,000$

Which of the following is a potential flaw in the VC method?

Group of answer choices

The VC method uses time value of money.

The method assumes that you will calculate a terminal value.

The method is dependent on net income, and your company may not have net income.

The VC method always uses a conservative discount rate.

Which of the following is not an essential variable used in the VC method of valuation?

Group of answer choices

Payment $($or annuity$)($PMT$)$

Future Value $($FV$)$

Number of time periods $($N$)($NPER$)$

Rate of interest $($discount rate$)($RATE$)$