Five years ago, Tom Civil purchased land with a big old house for $$200,000($the $$property$),$ located in the

small town of Kinkville, Nova Scotia, and renovated and converted the old house and started a flower shop

business $($operating under the business name $$Civilized Floral Design$).$

There are two other flower shops in town, but Tom$$s business does well and in each of the past three years

has had an $$EBITDA$($i$.$e$.,$ earnings before interest, taxes, depreciation, and amortization$)$ of $$120,000$ per

year. The land he purchased now has a book value of $$155,000,$ but recently he had it appraised by a

qualified$/$certified real estate appraiser, and the valuation came in at $$400,000.$

Tom offers to sell the property and business as a going concern to Laura Rose for $$800,000,$ and Laura comes

to you, a Certified Business Valuator, for your quick opinion on this price. What do you think? Justify your answer.