Based on a calculated discount rate of 10.0%, your estimated business value is $3,690,427.<table class='pure-table' role='grid'><tr><th colspan='2' class='section'>Summary</th></tr><tr><td>Total future earnings/excess compensation</td><td>$7,000,000</td></tr><tr><td>Calculated discount rate</td><td>10.00%</td></tr><tr><td>Present value of today's earnings/excess compensation</td><td>$4,731,317</td></tr><tr><td>Less adjustment for small size/lack of marketability</td><td>$1,040,890</td></tr><tr><td>Estimated business value</td><td>$3,690,427</td></tr></table> <div id="chart1Container">Chart will load here</div> <script type="text/javascript"> <!-- var myChart1 = new FusionCharts( "MSColumn2D", "myChart1Id", "100%", "100%", "0", "1" ); myChart1.setXMLData("<chart showValues='0' showFCMenuItem='0' decimals='0' formatNumberScale='0' caption='Discounted Cash Flows' xAxisName='Years' numberPrefix='$' bgColor='FFFFFF' showBorder='0' canvasBgColor='ffffff' showAlternateHGridColor='0' plotGradientColor='' numberSuffix='' thousandSeparator=',' decimalSeparator='.'><categories><category label='1' /><category label='2' /><category label='3' /><category label='4' /><category label='5' /><category label='6' /><category label='7' /><category label='8' /><category label='9' /><category label='10' /></categories><dataset seriesName='Future Earnings + Excess Comp.' color='0B9191'><set value='700000.0' /><set value='700000.0' /><set value='700000.0' /><set value='700000.0' /><set value='700000.0' /><set value='700000.0' /><set value='700000.0' /><set value='700000.0' /><set value='700000.0' /><set value='700000.0' /></dataset><dataset seriesName='Today&apos;s Discounted Value' color='F58127'><set value='700000.0' /><set value='636364.0' /><set value='578512.0' /><set value='525920.0' /><set value='478109.0' /><set value='434645.0' /><set value='395132.0' /><set value='359211.0' /><set value='326555.0' /><set value='296868.0' /></dataset></chart>"); // --> </script> <ul><li><a href="bus01">What are the tax savings of a qualified retirement/cafeteria plan?</a></li><li><a href="bus02">What are my new business startup costs?</a></li><li><a href="modal-premium-apr-calculator">Should I pay or charge monthly, quarterly or annually?</a></li><li><a href="business-valuation">What is the value of my business?</a></li><li><a href="breakeven-analysis">How many units do I need to sell to breakeven?</a></li><li><a href="lease-vs-buy-equipment">Should I lease or buy equipment?</a></li><li><a href="financial-ratio-analysis">What are my business financial ratios?</a></li><li><a href="total-compensation">What is my employee total compensation package worth?</a></li><li><a href="section-179-deduction">What are my tax savings with Section 179 deduction?</a></li></ul><table class='pure-table pure-table-bordered' role='grid'><tr><th scope="col">Year</th><th scope="col">Future Earnings Plus Excess Compensation</th><th scope="col">Today's Discounted Value</th></tr><tr><td role="rowheader" scope="row">1</td><td>$700,000</td><td>$700,000</td></tr><tr><td role="rowheader" scope="row">2</td><td>700,000</td><td>636,364</td></tr><tr><td role="rowheader" scope="row">3</td><td>700,000</td><td>578,512</td></tr><tr><td role="rowheader" scope="row">4</td><td>700,000</td><td>525,920</td></tr><tr><td role="rowheader" scope="row">5</td><td>700,000</td><td>478,109</td></tr><tr><td role="rowheader" scope="row">6</td><td>700,000</td><td>434,645</td></tr><tr><td role="rowheader" scope="row">7</td><td>700,000</td><td>395,132</td></tr><tr><td role="rowheader" scope="row">8</td><td>700,000</td><td>359,211</td></tr><tr><td role="rowheader" scope="row">9</td><td>700,000</td><td>326,555</td></tr><tr><td role="rowheader" scope="row">10</td><td>700,000</td><td>296,868</td></tr></table><h2>Further Resources</h2><ul style="list-style: unset !important;"><li>Calculate and <a href="https://www.moneyhelpcenter.com/college-career/calculate/business-financial-ratios/" target="_blank">review your business financial ratios.</a></li><li>Read about <a href="https://www.moneyhelpcenter.com/article/federal-income-tax-bracket-and-rates-for-2018/" target="_blank"> brackets and rates.</a></li><li>Calculate <a href="https://www.moneyhelpcenter.com/taxes/calculate/much-self-employment-tax-will-pay/" target="_blank">how much self-employment tax you will pay.</a></li><li>Discuss <a href="https://www.moneyhelpcenter.com/how-much-money-after-taxes/" target="_blank">how much money you will have after taxes.</a></li><li>Calculate <a href="https://www.moneyhelpcenter.com/credit-debt/calculate/projected-net-worth/" target="_blank">your projected net worth.</a></li></ul>