The owners of a private company have received an unsolicited takeover bid from another company. An independent accountant has produced the following valuations of the private company:

(1) Piecemeal net realizable value £1.8 million

(2) Economic value of the business (based on the present value of future cash flows) £2.5 million

(3) Historic cost adjusted for changes in inflation £2.8 million

(4) Cost of setting up an equivalent venture £3.0 million

Assuming that the above valuations accord with the expectations and risk perceptions of the vendors, what is the lowest price that the accountant should advise them to accept for selling all the share capital of the company?

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