Answer questions 1-3 using the following information. Please show your calculation process. At the end of Year 0 Jarrett Corp. developed the following forecasts of net income: Year Year 1 Year 2 Year 3 Net Income $20,000 $20,000 $20,000 Management believes that after Year 3, Jarrett will grow at a rate of 7% each year. Total common shareholders' equity was $110,000 on December 31, Year 0. Jarrett has not established a dividend and does not plan to pay dividends during Year 1 to Year 3. Its cost of equity capital is 12%. 1. Calculate Jarrett’s residual income in years 1, 2, and 3. 2. Calculate the continuing value of residual income after year 3. 3. Compute the value of Jarrett at the beginning of year 1, using the residual income valuation model.