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assessment id: 23324 18course id 24508_1&content de 573368 18 maining Time: 1 hour, 33 minutes, 00 seconds. estion Completion Status: QUESTION 23 You work for

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assessment id: 23324 18course id 24508_1&content de 573368 18 maining Time: 1 hour, 33 minutes, 00 seconds. estion Completion Status: QUESTION 23 You work for a venture capital firm and have been asked to evaluate investing in an artificial intelligence startup. The startup is seeking $9 million in venture capital financing. Your analysis reveals that there are three possible scenarios pessimistic, expected, and optimistic-representing different profitability, growth, and valuation expectations. Given the riskiness of this young company, you decide the required rate of return is 30 percent. Given the following information and an expected sale of the firm in 5 years, determine whether your fund should invest in the startup: Pessimistic Expected Optimistic Probability of outcome 50% 25% Revenue in year 5 (Smillions) $10 1 $25 540 Profit margin 10% 15% Price/earnings ratio at sale 20 What is the Net Present Value of the startup? 25% 24 TTT Arial : 3 (12) TEEB Q Click Save and Submit to save and submit Click Save All Answers to see all answers

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