Solution for QID #21907: You own a wholesale plumbing supply store. The store current | StudyHelpMe

You own a wholesale plumbing supply store. The store currently generates revenues of $ 1.01million per year. Next? year, revenues will either decrease by 9.8 % 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 $ 880 comma 000 per year. There are no costs to shutting? down; in that case you can always sell the store for $ 550 comma 000 What is the business worth today if the cost of capital is fixed at 9.6 % question mark ?(?Hint: Make sure to round all intermediate calculations to at least four decimal places.?)