Forbes (https://www.forbes.com/teams/chicago-cubs/?sh=ac35e87e5f7d) estimates that the Chicago Cubs are worth $3.8 billi

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Forbes (https://www.forbes.com/teams/chicago-cu ... 35e87e5f7d) estimates that the Chicago Cubs are worth $3.8 billion as of March 2022. Note that the Cubs have an annual operating income of $68 million. Use the present value method to make your own estimate of the value of the Chicago Cubs.You must clearly state your assumptions about the inflation rate, the team’s effective tax rate, the interest rate, and the length of time the team will exist into the future. Explain why your assumptions are reasonable. Your estimate does not have to agree with the Forbes estimate, but it should be in the same “ballpark.”
Forbes (https://www.forbes.com/teams/chicago-cu ... 35e87e5f7d) estimates that the Chicago Cubs are worth $3.8 billion as of March 2022. Note that the Cubs have an annual operating income of $68 million. Use the present value method to make your own estimate of the value of the Chicago Cubs.
You must clearly state your assumptions about the inflation rate, the team’s effective tax rate, the interest rate, and the length of time the team will exist into the future. Explain why your assumptions are reasonable. Your estimate does not have to agree with the Forbes estimate, but it should be in the same “ballpark.”