LearnRite.com offers e-commerce service for children's "edutainment" products and services. The word edutainment is used to describe software that combines "educational" and "entertainment" components. Valuable product information and detailed editorial comments are combined with a wide selection of products for purchase to help families make their kids' edutainment decisions. A team of leading educators and journalists provide editorial comments on the products sold by the firm. LearnRite targets highly educated, convenience oriented, and value conscience families with children under the age of 12, estimated to be about 35 percent of Internet users. The firm's warehouse-distribution model results in higher net margins, as well as greater selection and convenience for customers, when compared to traditional retailers. Gross profit margins are expected to average about 30 percent each year. Because of relatively high marketing expenditures aimed at gaining market share, the firm is expected to suffer net losses for two years. Marketing and other operating expenses are estimated to be $3 million in 2020 and $5 million in 2021, respectively. However, during the third year operating cash flow breakeven should be reached. Net profit margins are expected to average 10 percent per year beginning in year 3. Investment in bricks and mortar is largely in the form of warehouse facilities and a computer system to handle orders and facilitate the distribution of inventories. After convidering the investment in inventories, the asset intensity or turnover is expected to average about two times per year. LearnRite estimates that venture investors should earn about a 40 percent average annual compound rate of return and sees an opportunity for a possible initial public offering in about six years. If industry consolidation occurs, a merger might occur even sooner. The management team is headed by Srikant Kapoor who serves as President of Learn Rite.com and who personally controls about 35 percent of the ownership of the firm. Mr. Kapoor has more than twelve years experience in high-tech industries including previous positions with US West and Microsoft. He holds a B.S. degree in electrical engineering from an Indian technology institute and an MBA from a major U.S. university. Sean Davidson, Director of Technology has more than ten years of experience in software development and integration Walter Vu has almost ten years of experience in sales and business development in the software industry including positions at Claris and Maxis. Mitch Feldman, Director of Marketing, was responsible for six years for the marketing communications function and the Internet operations of a large software company. Management strives for continual improvement in ease of user interface, personalized services, and amount of information supplied to customers, The total market for children's entertainment is estimated to be $35 billion annually. Toys account for about $20 billion in annual spending. Summer camps are estimated to generate $6 billion ammually. This is followed by children's videos and video games at $4 billion each. Children's software sales currently generates about $1 billion per year in revenues and industry sales are expected to grow at a 30 percent annual rate over the next several years. Learn Rite has made the following five-year revenue projections:Year 2020 2021 2022 2023 2024 Revenues (SM)$1.0 59.6 530.1 567.8 5121.4 A. Project industry sales for children's software through the year 2024 based on the information provided above. B. Calculate the year-to-year annual sales growth rates for LearnRite. [Optional: Estimate the compound growth rate over the 2020 through 2024 time period using a financial calculator or computer software program.] C. Estimate LearnRite's expected market share in each year based on the above data. D. Estimate the firm's net income (loss) in each of the five years. E. Estimate the firm's return on assets beginning when the net or after-tax income is expected to be positive. F. Score LearnRite's venture investor attractiveness in terms of the Industry/Market Factor Category using the VOS Indicator Th guide and criteria set out in Figures 2.8 and 2.9. If you believe there are insufficient data, indicate that decision with an "N/A." G. Score LearnRite's venture investor attractiveness in terms of pricing profitability factors. Follow the instructions in Part F. H. Score LearnRite's venture investor attractiveness in terms of financial/harvest factors. Follow the instructions in Part F. 1. "Score" LearnRite's venture investor attractiveness in terms of management team factors. Follow the instructions in Part F. J. Determine overall total points and an average score for LearnRite as was done for the Companion Systems Corporation in the Appendix. Items where information is judged to be lacking and an NA is used should be excluded when calculating an average score. K Provide a brief written summary indicating how you feel about LearnRite.com as a business opportunity