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You own a wholesale supply store. The store currently generates revenues of $1.02 million per year. Next year, revenues will either decrease by O 1%

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You own a wholesale supply store. The store currently generates revenues of $1.02 million per year. Next year, revenues will either decrease by O 1% or increase by 4 7%, with equal probability, and then stay at that level as long as you operate the store. You own the store outright Other costs run $890,000 per year. There are no costs to shutting down, in that case you can always sell the store for $450,000. What is the business worth today if the cost of capital is fixed at 10.1%? (Hint Make sure to round all intermediate calculations to at least four decimal places.) decimal What is stor What is the business worth today if the cost of capital is fixed at 10.1%? Today the business is worth (Round to the nearest dollar.)

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