Draw a simply diagram of earnings

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Analysts estimate that Tesla will earn $4.62 in 2021. Let's assume that profits will then increase by 50% per year for 5 more years, and then remain constant at this final amount forever. If interest rates are 3%, what is the present value of Tesla earnings?

a. Draw a simply diagram of earnings.

b. Use direct equations to calculate the present value.

c. Build an Excel (or other spreadsheet) model to double check your answer in b). Cut a snip from the spreadsheet and past it here.

Reference no: EM132789859

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