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You own a wholesale plumbing supply store. The store currenty generates revenues of $1.02 million per year. Next year, fevenues will oither decrease by 10.4%

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You own a wholesale plumbing supply store. The store currenty generates revenues of $1.02 million per year. Next year, fevenues will oither decrease by 10.4% or increase by 5.4%. Wh equal probabiaty, and then stay at that level as long as you operate the store. You own the store outright. Oener costs run $880,000 per year. There are no costs to shutting down; in that case you can always sell the store for $470,000. What is the business worth loday if the cost of capital is fixed at 10.3% ? (Hint Make sure fo round all intormediafe calculations fo at least four. decinal places.) What is the business worth foday if the cost of capilal is fixed at 10.3% ? Today the business is worths (Round to the nearest dolar.)

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