. A venture capitalist wants to estimate the value of a new venture. The venture is not expected to produce net income or earnings until the end of Year 5 when the net income is estimated at $1,600,000. A publicly traded competitor or comparable firm has current earnings of $1,000,000 and a market capitalization value of $10,000,000. a) Estimate the value of the new venture at the end of Year 5 using the current price-to-earning relationship for the comparable firm? b) Estimate the present value of the venture at the end of Year 0 if the venture capitalist wants a 40% annual rate of return on the investment, for $500,000 investment.

question A is 10, but I need help for part b, thanks!