A small company has only one employee-owner: an engineer. The engineer has built a machine out of easily available scrap parts which she bought for cheap. Only the engineer knows how to operate the machine, and its workings are too complicated to teach to anyone else. In the hands of the engineer, this machine is expected to produce enormous cashflows for very little risk. You are hired by the engineer as a consultant to value the company. You try to find the fair value of the machine. Your coworker tells you that you should use either the replacement cost or the liquidation value (or both) as a proxy for the fair value. Your answer is: both bers are likely much higher than the (A) That's a bad idea beca fair value. (B) That's a bad idea because both numbers are likely much lower than the fair value. (C) That's a good idea because both numbers are likely approximately the same as fair value. (D) That's a good idea because one number could be higher than fair value, but the other could be lower, so if we take the average the error will cancel out