Pikes Peak wants to open up a few coffee shops around Seattle.

1. Each location costs $450,000 2. They plan to start 1 at the beginning of year 1, 2 locations at the end of year 2, and 3 more at the end of year 3 to spread out the work. 3. Each location brings in profits of $324,000 per year 4. They plan to sell everything in 5 years and thinks they could sell them for $67,000 each at that time. 5. Assume a discount rate of 9%. 6. Assume each location depreciates $90,000 per year.

What would the business be worth today using the Abnormal Earnings Model?