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You own a movie theater. The theater generates $100,000 per year in net income. This is expected to grow at 2% per year. Someone offers

  • You own a movie theater. The theater generates $100,000 per year in net income. This is expected to grow at 2% per year. Someone offers to buy the theater from you. How much should you charge as the selling price of the theater? Justify your answer.

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