A venture capitalist wants to estimate the value of a new venture.A venture capitalist wants to estimate the value of a new venture. The venture is not expected to produce net income or earnings until the end of year 5 when the net income is estimated at $1,600,000. A publicly-traded competitor or “comparable firm” has current earnings of $1,000,000 and a market capitalization value of $10,000,000.Estimate the value of the new venture at the end of year 5.

Estimate the present value of the venture at the end of year 0 if the venture

capitalist wants a 40 percent annual rate of return on the investment.

A venture capitalist wants to estimate the value of a new venture.A venture capitalist wants to estimate the value of a new venture. The venture is not expected to produce net income or earnings until the end of year 5 when the net income is estimated at $1,600,000. A publicly-traded competitor or “comparable firm” has current earnings of $1,000,000 and a market capitalization value of $10,000,000.Estimate the value of the new venture at the end of year 5.

Estimate the present value of the venture at the end of year 0 if the venture

capitalist wants a 40 percent annual rate of return on the investment.

A venture capitalist wants to estimate the value of a new venture.A venture capitalist wants to estimate the value of a new venture. The venture is not expected to produce net income or earnings until the end of year 5 when the net income is estimated at $1,600,000. A publicly-traded competitor or “comparable firm” has current earnings of $1,000,000 and a market capitalization value of $10,000,000.Estimate the value of the new venture at the end of year 5.

Estimate the present value of the venture at the end of year 0 if the venture

capitalist wants a 40 percent annual rate of return on the investment.

Estimate the present value of the venture at the end of year 0 if the venture

capitalist wants a 40 percent annual rate of return on the investment.