17.

In emerging from reorganization under Chapter 11 of the bankruptcy laws, a company is expected to have total future cash flows from its restructured operations of $5,000,000 (discounted present value = $3,500,000). In addition, excess assets, not needed for future operations, have a carrying value of $300,000 and are expected to be sold for $200,000.

The companys reorganization value is:

Select one:

a. $3,700,000

b. $3,500,000

c. $5,200,000

d. $5,250,000