Question
Based on the proforma financials below and using the local investor approach, provide one of the two potential values of this business in year 5,
Based on the proforma financials below and using the local investor approach, provide one of the two potential values of this business in year 5, and provide one of the two potential current values of the business assuming that the investor wants a 10x ROI. [Do not use commas or $ signs in your answer]
| Year | Y1 | Y2 | Y3 | Y4 | Y5 |
| Revenue | $60,000 | $200,000 | $350,000 | $700,000 | $1,400,000 |
| EBITDA | -$30,000 | $60,000 | $200,000 | $300,000 | $400,000 |
Value in year 5: $
Value now: $
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
