5. Super Venture Investments (SVI) Inc. is contemplating an investment in Awesome Company Ltd, a well-established high-growth IT firm. SVIs investment policies mandate that its minimum investment is $5 million per round, its investment harvest must occur within 6 years, and that, at closing of an investment round, it may own no less than 25% and no more than 49% of the fully diluted shares of a company. Given the outlook outlined below, demonstrate how SVI is within its policy to proceed with the proposed investment.

Scenario Probability Annual EBITDA EBITDA Multiple

Positive 30% $16 million 13x

Baseline 50% $10 million 9x

Negative 20% $6 million 6x