A petition for the reorganization of the Boniface Company has been filed under the Insolvency Act. The trustees estimate the firm's

liquidation value, after considering costs, is $$140$ million. Alternatively, the trustees, using the analysis of the Zulu Consulting firm,

predict that the reorganized business will generate $$20$ million annual cash flows in perpetuity. The discount rate is $13\%.$

Calculate the present value if the company is alive. $($Enter the answer in millions. Round the final answer to $2$ decimal places. Omit $

sign in your response.$)$

PV $

Should Boniface be liquidated or reorganized?

Boniface should be liquidated.

Boniface should be reorganized.

$*$Please explain with details. Thank you.