This is not for a homework question but an clarification to the answer
and comments of Question ID: 477730 .

Here's the scenario:
I have $100,000 to invest.

Option A is to invest in the stock market that delivers an annual return of 7%.
What is the value of my investment at the end of each year from years 1-10?

Option B is to buy a company for $100,000 that returns a consistent
flat profit of $20,000/year.  What is the value of my invest ment if i
reinvest my profits (at the end of each year) in the same stock
portfolio of option A giving me return of 7% from years 1-10?

It's a question that cannot be answered based on your current assumptions.

Option B would consist of two components; the stock portfolio and the
valuation of the company.  The company valuation is the variable.

In ten years, the question is what would the company be worth?  This
is not calculable without any additional information.

For example, if you took the initial $100,000 and purchased inventory
(in year 1, for example), the value would be $100,000.  If you took
that same investment and spent it $100,000 operational expenses (i.e.
telephone, rent, professional fees, etc.) the value of the company
would be significantly different.

Based on the portfolio alone, and excluding the valuation of the
company, Option A would be worth $197K at the end of year 10, whereas
Option B would be worth $296K (investing 20K per year for 10 years),
excluding the valuation of the company.

Yes- and no- the company is basically worth what it makes- a flat
profit of about $20k/yr- if you read the question that inspired this
you will see that the company in question has one asset- a registered
domain name- and a contract with another entity that generates passive
income for the owner of the domain.  No inventory- almost no expenses-
just sit back and collect money.
the original question was what was the vlaue of the company if the
owner wanted to sell it.  The researched GA answer was up to 5x the
annual revenue of the company.  I was simpy curious to find out what
would happen to your money if you left it in the markets or bought the
company and then reinvested in the markets.  I don't trust my
math/excel skills so I posted the question - but i am better than i
thought- or we are both wrong- since i came up with what you did.