23) You have been asked to assess the value of a Laundry business, which serves both retail and commercial clients (hotels, etc.). The following is some key financial information of the LLC. $50,000: Cash balance in excess of working capital requirements) $100,000: Business loan payable balance. $300,000: Cost of equipment purchased 6 years ago (12-year asset life) $160,000: Accumulated depreciation balance on equipment $400,000: Replacement cost of equipment (i.e., cost of new equipment) $250,000: Appraised market value of equipment $100,000: Historical cost and current replacement cost) of other assets (sign, decorations, cash register, chairs, etc.) - all fully depreciated $20,000: Salvage value of other assets. $30,000: Working capital balance (mainly supplies and accounts receivable) . $90,000: Net Income (which is expected to be unchanged in the future - no growth anticipated) 12: average P/E ratio for this type of business (i.e., 11.1% is required return) a) Please estimate the value of the business (LLC) using the following methods: . Capitalization of earnings: ii. Full Replacement Cost: iii. Adjusted Book Value (disposal value): iv. Accounting Net Book Value: b) Please list 2-3 potential risks of buying this business