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You own a wholesale plumbing supply store. The store currently generates revenues of $1.01 million per year. Next year, reven

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Answer #1

cost of capital (given) = 10.4%

The present worth of the business today = present value of all future benefits (profits).
= Average profit/ cost of capital.
= $114,245/10.4%
=$1,098,509.62

$,010,000 Invease by 4By. deeneaee by97y. 910, 010 1,os8,480 Revenue Costs 8t0000 8t0,000 40,010 /88,480 profa rerege po (o-5

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