A startup company needs $$500,000$ in venture capital to continue developing. The startup is forecasting the following EBITDAs starting next year:

Year EBITDA

$1-175,000$

$275,000$

$3300,000$

$4650,000$

$51,050,000$

The venture capital firm thinks the startup will sell for $6$ times EBITDA at the end of the $5$th year and the firm will have $$1\mathrm{.}2$ million in debt at that time of which $$1$ million will be interest$-$bearing debt. The venture capital firm also expects the startup company to have $$200,000$ in cash at the end of the $5$th year. Assume the venture capital firm requires a $45\%$ annual rate of return for this stage of investment. Also assume the venture capital firm is asking for straight common stock in return for the $$500,000$ of financing.

$$ What dollar amount is the VC firm hoping to get in year $5$ if it gets its required rate of return? Select the number closest to the correct answer. $[$ Select $]["$$$1\mathrm{.}47$ million", $"$$$3\mathrm{.}20$ million", $"$$$1\mathrm{.}05$ million", $"$$$2\mathrm{.}84$ million", $"$$$6\mathrm{.}30$ million"$]$

$$ What is the estimated enterprise value of the firm in year $5?$ Select the number closest to the correct answer. $[$ Select $]["$$$5\mathrm{.}8$ million", $"$$$5\mathrm{.}5$ million", $"$$$6\mathrm{.}3$ million", $"$$$3\mathrm{.}2$ million"$]$

$$ What is the estimated equity value of the firm in year $5?$ Select the number closest to the correct answer. $[$ Select $]["$$$2\mathrm{.}8$ million", $"$$$5\mathrm{.}5$ million", $"$$$5\mathrm{.}3$ million", $"$$$5\mathrm{.}7$ million", $"$$$6\mathrm{.}3$ million"$]$

$$ What fraction of the firm's shares will the startup have to give the venture capital firm? Select the number closest to the correct answer. $[$ Select $]["58\mathrm{.}27\%","57\mathrm{.}8\%","58\mathrm{.}05\%","59\mathrm{.}0\%"]$