$.$ One of your early assignments at your new place of employment at an equity crowdfunding platform is to assess the value of companies that are seeking listing on the platform. A new start$-$up presents itself with the following cash flow projections. You consider using NPV and option pricing methods to value this company. All amounts are in thousands.

Year $0$ Year $1$ Year $2$ Year $3$ Year $4$ Year $5$

Cash flow except Capex $000161550$

Capital Expenditures $-12000000$

Total Cash Flow $-12000161550$

WACC $=25\%,$ terminal growth rate $=3\%.$ Initial investment: $$30$ thousand for R&D equipment and personnel. The $$100$ thousand expenditure on the plant could be undertaken any time in the first two years $($whenever the project would be undertaken, the present value of the plant construction expenditures would total $$100$ thousand in today$$s dollars$).$ The entrepreneur pursues the $$100$ thousand expenditure only if the first stage investment is successful. The Valuation decision now based on a $$20$ thousand investment bundled with a two$-$year European call option and priced using the Black$-$Scholes model. Time to expiration $($T$-$t$)=2$ years. Risk$-$free rate $($rf$)=7\%.$ Exercise price $($X$)=$ present value of the investment to build the plant $=$ $$100$ thousand. Stock Price $($S$)=$ discounted cash flows generated by the underlying assets associated with the expansion opportunity can be computer for Year $0$ using a discount rate of $25\%$ and a terminal growth rate of $3\%$ per year. The standard deviation $(\backslash$sigma $)$ based on comparable is $0\mathrm{.}6.$ Do you think listing this company on your equity crowdfunding platform would be good for its reputation and long$-$term success of the start$-$up$,$ and for the platform? Why? Or why not?