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Multipart Question Sequoia is considering a Series A investment of $20M for 30% ownership in FreshDirect, an online grocer. Sequoia expects FreshDirect to IPO at

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Multipart Question Sequoia is considering a Series A investment of $20M for 30% ownership in FreshDirect, an online grocer. Sequoia expects FreshDirect to IPO at a $200M valuation in 5 years with a probability of 50% and to fail worthless otherwise. Sequoia's discount rate is 10%. Assume a 50% retention percentage. 4 1 point What is the expected present value of Sequoia's investment? (ROUNDTO NEAREST WHOLE NUMBER, e.g. 34.4 is 34; ANSWER IN MILLIONS OF DOLLARS, e.g. 34.4 million is 34) Type your answer... 5 1 point Sequoia should accept this investment. True False Multipart Question Sequoia is considering a Series A investment of $20M for 30% ownership in FreshDirect, an online grocer. Sequoia expects FreshDirect to IPO at a $200M valuation in 5 years with a probability of 50% and to fail worthless otherwise. Sequoia's discount rate is 10%. Assume a 50% retention percentage. 4 1 point What is the expected present value of Sequoia's investment? (ROUNDTO NEAREST WHOLE NUMBER, e.g. 34.4 is 34; ANSWER IN MILLIONS OF DOLLARS, e.g. 34.4 million is 34) Type your answer... 5 1 point Sequoia should accept this investment. True False

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