Final answer:
To compute the total book value of an investor's shares, apply the concept of present discounted value (PDV) to future profits. Add up the present values for different time periods, and divide the PDV of total profits by the number of shares.
Step-by-step explanation:
To compute the total book value of an investor's shares, you need to apply the concept of present discounted value (PDV) to the future profits of the company. First, add up all the present values for the different time periods, considering the 15% interest rate. Then, divide the PDV of total profits by the number of shares. For example, if the PDV of total profits is $51.3 million and there are 200 shares, the total book value would be $256,500 per share.