An unlisted software development business is to be sold by its founders to a private equity house following the initial development of the software. The business has not yet made a profit but significantprofits are expected for the next three years with only negligible profits thereafter. The business owns the freehold of the property from which it operates. However, it is the industry norm to lease property.
Which THREE of the following are limitations to the validity of using the Calculated Intangible Value (CIV) method for this business?
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