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Niloy has a small restaurant that just netted $122485K profits for the completed year. Niloy is implementing a new product line which he feels 80%
Niloy has a small restaurant that just netted $122485K profits for the completed year. Niloy is implementing a new product line which he feels 80% of the time will result in the company growing at 1.1% per year forever the remainder of the time may cause the business to shrink 0.8% per year forever. The cost of his loan, which you may assume is fairly priced, is 9.2% EAR. Assuming that Niloy's utility function is natural logarithmic (In), what would be the price that we would be willing to sell the restaurant for today? [Please give your answer in dollars, so the entry 2034.56 will be interpreted as $2,034.56 ] [Hint find the EUT and then invert as you would for a CEQ]
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