11-90. Reconsider the following engagement assumptions for The Diamond Ridge Golf Course, as outlined in the chapter:

• Purpose: To support the company’s buy-sell agreement

• Standard of value: Fair value

• Premise of value: Going concern

• Type of engagement: Valuation

(vs. calculation)

• Valuation date: December 31, 2012

• Interest being valued: 100% controlling interest In addition, assume that in January 2013 there was a public announcement that Jack Nicklaus was designing a new 18-hole championship course about 20 miles from The Diamond Ridge Golf Course. This course will have a full practice facility and a clubhouse that provides dining to both members and the public. Fees for an 18-hole round are expected to range from $60 to

$75. This announcement took the local golfing community by surprise, and the new course is expected to impact the competitive environment once completed.

You have not yet issued your valuation report to the owners of The Diamond Ridge Golf Course. How will this new information impact your conclusion of value?