You own a wholesale plumbing supply store what is the


You own a wholesale plumbing supply store. The store currently generates revenues of $1.03 million per year. Next? year, revenues will either decrease by 10.2% or increase by 4.7 %?, with equal? probability, and then stay at that level as long as you operate the store. You own the store outright. Other costs run $890,000 per year. There are no costs to shutting? down; in that case you can always sell the store for $410,000. What is the business worth today if the cost of capital is fixed at 10.4 %? ?(?Hint: Make sure to round all intermediate calculations to at least four decimal places.?)? What is the business worth today if the cost of capital is fixed at 10.4%?

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Financial Management: You own a wholesale plumbing supply store what is the
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