Maxwell Corporation wants to acquire a retail chain store, Good Way. After a few round of talks, Good Way asks a sales price of $200,000,000, the consultant of Maxwell found out that the net identifiable assets of Good Way is around $140 million, the average earnings of Maxwell for the past three years is $30 million per year. The normal rate of return of the retail chain store is 15%, and the consultant estimated the excess earnings (if any) would last for five years.

Instructions:

1. Calculate the goodwill according to the asked sales price of Good Way,
2. What is the performance of Good Way, Why?
3. Should Maxwell acquire Good Way? What is the maximum price?