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At this very moment, an office-based opioid treatment clinic in Cocoa, FL is for sale. The asking price is $1,478,281. Gross annual revenue is $424,036,

  1. At this very moment, an office-based opioid treatment clinic in Cocoa, FL is for sale. The asking price is $1,478,281. Gross annual revenue is $424,036, while annual cash flow (something close to profit) is $211,183 Office furniture, etc., will remain. (a) Assume this level of profit will continue as far as the eye can see. What is your estimate of the value of the practice in this case? Explain your answer and any assumptions you have made. (b) Suppose this level of profit will continue for 8 years, but then fall to zero. What is your estimated value of the practice under those circumstances? Explain your answer and any assumptions you have made. Cite economic theory or empirical evidence to support your answers.

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