BMBA $9460$ group is carrying out a set of analysis to decide whether to start a new company called MBA Starters Inc $($MS$).$ If we start MS in $2024,$ MS will have no sales in $2024.$ MS is expected to have sales of $$150$ million in $2025$ and the sales will grow at the rate of $25\%$ in $2026$;$30\%$ in $2027$;$10\%$ in $2028$ ; and $2\%$ from $2029$ on forever. We expect that net income will be $48\%$ of sales $($based on the estimation that EBIT to be $60\%$ of sales and we have to pay a corporate tax rate of $20\%).$ We expect that increases in net working capital requirements to be $9\%$ of any increase in sales, capital expenditures to be $7\%$ of sales, and depreciation expenses to be $6\%$ of sales. The weighted average cost of capital is estimated to be $13\%.$ To start the company, we need to invest $$600$ million at the end of $2024.$ As a potential CEO, would you recommend us to start the new company based on the NPV$?$ What's the potential value of this decision? $($hint: The potential value can be measured using the NPV of the project.$)$ If we are planning for an IPO at the beginning of $2025$ to sell all the equity for $20$ million shares, what is the fair price for each share of our company stock?

What's the internal rate of return $($IRR$)$ of the project assuming that we invest and sell the firm at the beginning of $2030?$ Would you recommend us to start the new company based on the IRR?

More specifically,

$(2$ points$)$ the sales in $2030$ is calculated as $q,q,=q,$ ;

$(2$ points$)$ the net income in $2029$ is calculated as $+-1-1==q,$ ;

$(2$ points$)$ the depreciation in $2028$ is calculated as $--1-1-1=$dots$-1$

$(2$ points$)$ the capital expenditure in $2027$ is calculated as $q,$ x $q,$

$(3$ points$)$ the increase in the net working capital in $2026$ is calculated as

$q,=q,$ ;

$(3$ points$)$ the free cash flow in $2025$ is calculated as

$q,$

$(3$ points$)$ the terminal firm value at the beginning of $2030$ is calculated as