For the next 2 questions, assume the following:

ACME Software Company has CURRENT (i.e. today; year "zero") market value of its venture's assets of $250K (effectively its current equity valuation cash flow). Forecasted cash-flows for next 5 years is as follows:

Year 1: ($350,000), i.e. negative

Year 2: ($100,000)

Year 3: $250,000, i.e. positive

Year 4: $450,000

Year 5: $500,000

Year 6+: Assume $600K in year 6, growing at 6% annually thereafter

Years 1-5 discount rate of 40%

Years 6+ assume 15% given company should be more mature, less risky, and more predictable..

What is the PV and NPV of ACME Software?