For easier naming, call 2000 your year 0. The firm’s present value in 2000 is $536/1.103 ≈ $402.70—but you already knew this. If you purchase this company, its value in 2001 depends on a cash flow stream that is $0 in 2001, $0 in year 2002, and $536 in year 2003. It will be worth $536/1.102 ≈ $442.98 in 2001. In 2002, your firm will be worth $536/1.10 ≈ $487.27. Finally, in 2003, it will be worth $536. Each year, you expect to earn 10%, which you can compute from the four firm values.