You have been asked to assess the value of a Laundry business, which serves both retail and commercial clients (hotels, etc.). The following is some key financial information of the LLC. Value the assets on the Balance Sheet? The actual (historical) cost: $50,000: Cash balance (in excess of working capital requirements) $100,000: Business loan payable balance. $300,000: Cost of equipment purchased 6 years ago (12-year asset life) $160,000: Accumulated depreciation balance on equipment $400,000: Replacement cost of equipment (i.e., cost of new equipment) $250,000: Appraised market value of equipment $100,000: Historical cost (and current replacement cost) of other assets (sign, decorations, cash register, chairs, etc.) all fully depreciated $20,000: Salvage value of other assets. $30,000: Working capital balance (mainly supplies and accounts receivable) $90,000: Net Income (which is expected to be unchanged in the future no growth anticipated) 12: average P/E ratio for this type of business (i.e., 11.1% is required return)

a) Please estimate the value of the business (LLC) using the following methods: Capitalization of earnings: Full Replacement Cost: Adjusted Book Value (disposal value): Accounting Net Book Value: