Marta Otis is attempting to sell her business to Hubert Betley. The company has assets of $1,800,000, liabilities of $1,600,000, and stockholders’ equity of $200,000. Both parties agree that the proper rate of return to expect is 12 percent; however, they differ on other assumptions. Otis believes that the business will generate at least $200,000 per year of cash flows for 20 years. Betley thinks that $160,000 in cash flows per year is more reasonable and that only 10 years in the future should be considered. Using Table 2 in Appendix B, determine the range for negotiation by computing the present value of Otis’s offer to sell and of Betley’s offer to buy.