I NEED STEP BY STEP SOLUTIONS FOR EACH PART. DO NOT SKIP ANY PART. ANSWERS TO EACH ARE MARKED IN BOLD

14. Suppose your ventures expected mean cash flows are $(85,000) initially, followed by expected mean cash flows at the end of the first, second, and third years of $40,000, $40,000, and $35,000. What is the internal rate of return?

a. 13.9%

b. 14.7%

c. 16.2%

d. 17.2%

e. 19.2%

16. Estimate the value of a privately-held firm based on the following information: stock price of a comparable firm = $20.00; net income of a comparable firm = $20,000; number of shares outstanding for the comparable firm = 10,000; and earnings per share for the target firm = $3.00.

a. $10.00

b. $20.00

c. $30.00

d. $40.00

e. $50.00

17. Estimate the value of a privately-held firm based on the following information: total market value (or capitalization value) of a comparable firm = $200,000; net income of a comparable firm = $40,000; number of shares outstanding for the comparable firm = 20,000; net income for the target firm = $15,000; and number of shares outstanding for the target firm = 10,000.

a. $5.00

b. $7.50

c. $10.00

d. $12.50

e. $15.00