explain in more detales step $2-$ Value of entity after $5$ years $=7$ times $*$ EBITDA

EBITDA$=$

EBITDA

Probability

Value

$$100$

$0\mathrm{.}25$

$25$

$$0$

$0\mathrm{.}75$

$0$

EBITDA

$25$

Value of entity $=$ EBITDA $*7$ Times

$=25*7$

$=$$$175$M

Percentage of investment to be after $5$ Years $=$

$=$$$40\mathrm{.}227$M$/$$$175$M

$=22\mathrm{.}99\%$