You own a wholesale plumbing supply store. The store currently generates revenues of $ 1.01 million per year. Next year, revenues will either decrease by 10.1% or increase by

4.6%, with equal probability, and then stay at that level as long as you operate the store. You own the store outright. Other costs run $870,000 per year. There are no costs to shutting down; in that case you can always sell the store for $480,000. What is the business worth today if the cost of capital is fixed at 9.6 % ?

What is the business worth today if the cost of capital is fixed at 9.6 %?

Today the business is worth ? (Round to the nearest dollar.)