# The nursing home has a book value of \$20 million, a replacement cost of \$40 million, and a current sale value of \$10 million. If Beverly Enterprises has a cost of capital equal to 15 percent, at what value of annual cash flow would Beverly Enterprises be likely to sell the nursing home?A. \$1,600,000B. \$1,500,000C. \$1,550,000D. None of the above

The nursing home has a book value of \$20 million, a replacement cost of \$40 million, and a current sale value of \$10 million. If Beverly Enterprises has a cost of capital equal to 15 percent, at what value of annual cash flow would Beverly Enterprises be likely to sell the nursing home?A. \$1,600,000B. \$1,500,000C. \$1,550,000D. None of the above

Beverly Enterprises owns a nursing home that is currently earning \$2.0 million in cash flow on an annual basis, but this amount is expected to drop in the future. The nursing home has a book value of \$20 million, a replacement cost of \$40 million, and a current sale value of \$10 million. If Beverly Enterprises has a cost of capital equal to 15 percent, at what value of annual cash flow would Beverly Enterprises be likely to sell the nursing home?A. \$1,600,000B. \$1,500,000C. \$1,550,000D. None of the aboveBeverly Enterprises owns a nursing home that is currently earning \$2.0 million in cash flow on an annual basis, but this amount is expected to drop in the future. The nursing home has a book value of \$20 million, a replacement cost of \$40 million, and a current sale value of \$10 million. If Beverly Enterprises has a cost of capital equal to 15 percent, at what value of annual cash flow would Beverly Enterprises be likely to sell the nursing home?A. \$1,600,000B. \$1,500,000C. \$1,550,000D. None of the above

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The post The nursing home has a book value of \$20 million, a replacement cost of \$40 million, and a current sale value of \$10 million. If Beverly Enterprises has a cost of capital equal to 15 percent, at what value of annual cash flow would Beverly Enterprises be likely to sell the nursing home?A. \$1,600,000B. \$1,500,000C. \$1,550,000D. None of the above appeared first on nursing term paper.