Eva Prokop is attempting to sell her business to Joseph Kahn. The company has assets of $3,600,000, liabilities of $3,200,000, and stockholders’ equity of $400,000. Both parties agree that the proper rate of return to expect is 12 percent; however, they differ on other assumptions. Prokop believes that the business will generate at least $400,000 per year of cash flows for 20 years. Kahn thinks that $320,000 in cash flows per year is more reasonable and that only ten years in the future should be considered. Using Table 2 in the appendix on present value tables, determine the range for negotiation by computing the present value of Prokop’s offer to sell and of Kahn’s offer to buy.