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A potential investor is willing to provide $ 5 0 0 , 0 0 0 in first - round financing with the expectation of a

A potential investor is willing to provide $500,000 in first-round financing with the expectation of a 50% annual compound rate of return over the next five years. Founders currently hold 1,000,000 million shares of stock. The venture is expected to produce $500,000 in net income in year 5. A similar firm with annual net income of $1,000,000 sold shares to the public for $10,000,000. What is the pre-money valuation?
a. $316,800
b. $193,900
c. $120,300
d. $158,400
Please provide me with the equation for the BA2 Plus calculator method.

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