1. As a Venture Capitialist, your fund has $60 million dollars to invest in one of two companies. Calculate the NPV of each company, using a 40% discount rate. Calulate the pre money valuation, and post money valuation for each company. Explain what company you would invest in, and Calulate the percentage of owership you would need to invest in their business.

Company:A (RaceIQ)

Company:B HYGIEIA

RacelQ Engineering (C-Sec) Annual Financial Performance YEAR YEAR 2017 $3,045,000.00 $1,720,700.00 $1,324,300.00 YEAR YEAR YEAR 2016 2020 Income Statement Total Revenue Total Cost of Revenue Gross Profit Salaries & Wages Fixed Operating Expenses Depreciation Operating Income Interest Expense Earnings Before Taxes Tax Expense Net Income 2018 2019 $10,818,412.50 6,068,011.25 $4,750,401.25 $1,372,946.23 $255,910.30 $6,985.71 $3,114,559.01 $0.00 $3,114,559.01 -$1, 245,823.60 $1,868,735.40 $268,417,418.50 $16,160 309.05 $148,342,087.91 $120,075,330.60 $1,625,994.19 $274,137.51 -$13,500.00 $118,161,698.90 $0.00 $118,161,698.90 $47 264,679.56 $70,897,019.34 $29,026,066.41 $12,865,757.36 $1,420,999.35 $264,867.16 $66,420.00 $24,356.67 300 $92,076.67 $654,984.23 $196,722.45 242 $11,169,647.99 $468,864.75 $0.00 $468,864.75 187,545.90 $281,318.85 $92,076.67 $11,169,647.99 4467,859.20 $6,701,788.80 -$92,076.67 YEAR 2017 $3,320,770.76 $6,090,000.00 $9,410,770.76 YEAR YEAR YEAR YEAR Balance Sheet 2016 2018 $11,348,065.62 $20,091,337.50 $31,439,403.12 2019 $33,991,199.52 $55,894,790.04 $89,885,989.56 2020 306,002,839.30 $504,975,202.76 $810,978,042.07 $402,123.33 Accounts Receivable Current Assets $402,123.3:3 $7,100.00 $22,100.00 $44,100.00 $66,100.00 $88,100.00 Fixed Assets Less: Accumulated Depreciation Net Fixed Assets $5,800.00 $17,071.4:3 32,085.71 $43,842.86 $52,342.86 Total Assets $407,923.33 $9,427,842.19 $31,471,488.84 $89,929,832.42 $811,030,384.92