Final answer:
To determine the total return on Andrei's shares in Snowland, you need to add up present values for different time periods and divide the total profits by the number of shares to determine the price per share.
Step-by-step explanation:
To determine the total return on Andrei's shares in Snowland, we need to use the formula mentioned in the section. First, add up all the present values for the different time periods. The present value calculations determine the worth of future amounts in the present, given a 15% interest rate. Then, divide the present value of total profits by the number of shares to get the price per share.
In this case, the calculation would be: $51.3 million / 200 = $0.2565 million per share or about $256,500 per share.
It's important to note that expected profits are an estimate and not a certainty. Additionally, the appropriate interest rate to use should be carefully considered.