(Answered) Question suppose a certain site has a mcdonalds restaurant

Finance

Question: Suppose a certain site has a McDonald's restaurant on it (equipped with the usual golden arches, etc.). As a McDonald's, the site can generate $50,000 per year, net cash. In any other use it can only generate at most $40,000 per year, and it would cost $20,000 to remove the golden arches. Assuming a 10% required return:

a. What is the market value of this property?

b. What is its investment value to McDonald's?

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