BlackRock investors Pvt is trying to decide how much percent equity owner ship in Pritam auto ltd. it will need in exchange for a Rs 3 crores investment in Pritam could turn out to be a complete failure (black hole) barely surviving (living dead) or wildly successful (venture utopia) BlackRock assigns probabilities of .25 , .40 and 0.35, respectively to the three possible outcomes, following are the three cash flow scenarios or outcomes for the Pritam automobiles products investment that BlackRock expects to exit at the end of five years

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calculate the present value of each scenario/outcome and the total equity value for Pritam automobiles. also determine the acquired percentage of final ownership in Pritam automobiles that BlackRock would need for its rs 3 crores investment?

its rs 1000000

Year 1 Cash Flow (In Rupees) year 2 year 3. year 4 year 5 outcome probability Blackhole 0.25 O living dead 0.40 Croves Venture O 0.33 Utopia 45 Crores! Question No 03 This is a subjective question, hence you have to write your answer in the Text Field given below Blackrock Investors LLP, is trying to decide how much percent equity ownership in Pritam Automobile Products of 40 percent on venture investments like Pritam Automobile Products. Depending on the success of products cur hole), barely surviving (living dead), or wildly successful (venture utopia). Blackrock assigns probabilities of 0 25 or outcomes for the Pritam Automobile Products investment that Blackrock expects to exit at the end of five years Year 1 Outcome Black Hole Living Dead Venture Utopia Probability 0.25 0.40 Cashflows (in Rupees) Year 2 Year 3 Year 4 0 0 0 0 0 0 0 Year 5 0 10 Crores O 0.35 0 0 0 0 45 Crores Calculate the present value of each scenario outcome and the total equity value for Pritam Automobile Products Blackrock would need for its Rs. 3 Crores Investment? Response 20000Max Upto 20003 Characters) Formal Table - Insert Formal B 1 E 3 - E-33 Year 1 Cash Flow (In Rupees) year 2 year 3. year 4 year 5 outcome probability Blackhole 0.25 O living dead 0.40 Croves Venture O 0.33 Utopia 45 Crores! Question No 03 This is a subjective question, hence you have to write your answer in the Text Field given below Blackrock Investors LLP, is trying to decide how much percent equity ownership in Pritam Automobile Products of 40 percent on venture investments like Pritam Automobile Products. Depending on the success of products cur hole), barely surviving (living dead), or wildly successful (venture utopia). Blackrock assigns probabilities of 0 25 or outcomes for the Pritam Automobile Products investment that Blackrock expects to exit at the end of five years Year 1 Outcome Black Hole Living Dead Venture Utopia Probability 0.25 0.40 Cashflows (in Rupees) Year 2 Year 3 Year 4 0 0 0 0 0 0 0 Year 5 0 10 Crores O 0.35 0 0 0 0 45 Crores Calculate the present value of each scenario outcome and the total equity value for Pritam Automobile Products Blackrock would need for its Rs. 3 Crores Investment? Response 20000Max Upto 20003 Characters) Formal Table - Insert Formal B 1 E 3 - E-33