Mayfield Real Estate Development Valuation

Please use Excel spreadsheet to show the thought process and calculation details.

References: Under the income statement approach of the business valuation usually involves two methods-1. capitalization of earnings method and 2. the discounted cash flow method. The two method involves detailed calculations.

Mayeld Real Estate Development is a company that owns and operates a number of real estate ventures. The company also engages in real estate acquisitions and sales of properties, some of which are properties the company no longer wishes to operate. Similar real estate rms earn a 15upercent rate of return. Mayeld reported the following earnings over the last ve years: .Operating Income GainlLoss) on Sale of Assets $1,000,000 $700,000 $1,700,000 $1,500,000 $600,000 $2,100,000 $1,100,000 $400,000 $1,500,000 -$1,600,000 (200,000) $1,400,000 5 $1,800,000 (400,000) $1,400,000 . Prepare a business valuation report for Mayeld Real Estate Development using the income statement method