|
Table 7
|
Original Scenario |
After 5 Years, Before Revenue Decline |
After 5 Years, After Revenue Decline |
|
| Accounting Method | $1,000,000 | $500,000 | $500,000 |
| Net Cash Flow Valuation Method | $1,742,513 | $1,123,786 | $224,775 |
| Stranded Costs | $0 | $0 | $500,000
- $224,775 = $275,224 |
| Equity Value of Business if Continue to Operate | $1,742,513 | $1,123,786 | $224,775 |
| Equity Value of Business if Facility is Abandoned | $0 | $0 | $0 |