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ACME Software Company has CURRENT (i.e. today; year zero) market value of its venture's assets of $250K (effectively its current equity valuation cash flow). Forecasted

ACME Software Company has CURRENT (i.e. today; year "zero") market value of its venture's assets of $250K (effectively its current equity valuation cash flow). Forecasted cash-flows for next 5 years is as follows:

Year 1: ($350,000), i.e. negative

Year 2: ($100,000)

Year 3: $250,000, i.e. positive

Year 4: $450,000

Year 5: $500,000

Year 6+: Assume $600K in year 6, growing at 6% annually thereafter

Years 1-5 discount rate of 40%

Years 6+ assume 15% given company should be more mature, less risky, and more predictable..

What is the PV and NPV of ACME Software?

The answer is 1.24M and 1.49M. Can you please show how to get these numbers?

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