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The store currently generates revenues of $ 1 . 0 4 million per year next year revenues will either decrease by 1 0 . 3

The store currently generates revenues of $1.04 million per year next year revenues will either decrease by 10.3% or increase by 5.4% with equal probability and then stay at that level as long as you operate the store you own the store outright other costs run $890,000 per year. There are no costs to shutting down in that case. You can always sell the store for $510,000. What is the business worth today if the cost of capital is fixed at 10.5%?

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