# Over the next three years, a firm is expected to earn economic profits of $120.000 in the first year,$140.000 in the second year, and $1000,000 in... Over the next three years, a firm is expected to earn economic profits of$120.000 in the first year, $140.000 in the second year, and$1000,000 in the third year.  After the end of the third year, the firm will go out of business.  a. If the risk-adjusted discount rate is 10 percent for each of the next three years the value of the firm is $____________. The firm can be sold today for a price of$______________
b. IF the risk-adjusted discount rate is 8 percent for each of the next three years, the value of the firm is $___________. The firm can be sold today for a price of$____________________.