A venture capitalist firm wants to invest $$1\mathrm{.}5$ million in your NYDeli dot.com venture that you started six months ago.$$ You do not expect to make a profit until year four when your net income is expected to be $$3$ million.$$ The common stock of BioSystems, a $$comparable$$ firm, currently trades in the over$-$the$-$counter market at $$30$ per share.$$ BioSystems$$ net income for the most recent year was $$300,000$ and the firm has $150,000$ shares of common stock outstanding.$$

A$.$ Apply the VC method to determine the value of the NYDeli at the end of four years.

B$.$ If VCs want a $40\%$ compound annual rate of return on similar investments, what is the present value of your NYDeli venture?$$

C$.$ What percentage of ownership of the NYDeli dot.com venture will you have to give up to the VC firm for its $$1\mathrm{.}5$ million investment?