Going-Concern Value. There was a petition for reorganization of Hazel Corporation filed under Chapter 11. It was determined by the trustee that the firm's liquidation value, after considering expenses, was $5.3 million. The trustee predicts that the reorganized business will derive $500,000 in annual profit. The cost of capital rate is 10 percent. Assume profits will continue indefinitely. Is reorganization or liquidation recommended?