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An old-school arcade is for sale. You have gathered the following pertinent facts: (A.) the property (i.e., the land and building) is worth $500,000, the

An old-school arcade is for sale. You have gathered the following pertinent facts: (A.) the property (i.e., the land and building) is worth $500,000, the equipment and furniture are worth $100,000, its short-term assets (e.g., the inventory and supply) are $30,000, (B.) its short-term liabilities are $30,000 and it has no long-term liabilities, and (C.) the latest annual net income is $100,000. You estimate that the annual growth rate of net income will be 5% for perpetuity with a probability of 0.2, 3% with a probability of 0.7, and -2% with a probability of 0.1. The opportunity cost of your capital is 10% per annum. What is the value of this old-school arcade to you given the information above, and please explain how you would determine the value (show your calculation).

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