4. Green Energy Inc. gets most of its revenues from Federal subsidies. If a conservative

president is elected, the firm is uncertain it could survive without government

handouts. What should they do about this?

A. Record all assets at liquidation rates.

B. An independent valuation firm should be hired to estimate the expected life of the

firm and value firm assets in accordance with that estimate.

C. Ignore the problem and assume the firm will live forever.

D. The firm should make its own estimate of expected life and value firm assets in

accordance with that estimate.

E. A political scientist should be hired to estimate the likelihood of a conservative

presidency, and the firm assets should be valued in accordance with that estimate.

The answer is C. Can you guys explain why? It seems like the most unrealistic.