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Niloy has a small restaurant that just netted $95095 profits for the completed year. Niloy is implementing a new product line which he feels 71%
Niloy has a small restaurant that just netted $95095 profits for the completed year. Niloy is implementing a new product line which he feels 71% of the time will result in the company growing at 1% per year forever the remainder of the time may cause the business to shrink 0.9% per year forever. The cost of his loan, which you may assume is fairly priced, is 10.3% EAR. Assuming that Niloy's utility function is natural logarithmic (ln), what would be the price that we would be willing to sell the restaurant for today
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