Two years ago your friend opened a Bed-n-Breakfast on Cameno Island and asked you to estimate the current value of the business.After asking a bunch of questions you determined that the present value of the after-tax cash flows from owning this business is $460,000.A realtor suggested she was sure she could sell this property for $500,000 (after transaction costs) and is pushing him to sell because the sale price after transaction costs is greater than the value of the ongoing business.Do you agree with the realtor?

Answer rating: 100% (QA)

SOLUTION Based on the information provided I do not agree with the realtor The present value of the ... View the full answer