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out to be a complete failure (black hole), barely surviving (living dead), or wildly successful (venture Utopia). Vail Venture assigns probabilities of 0.20,0.50, and 0.30
out to be a complete failure (black hole), barely surviving (living dead), or wildly successful (venture Utopia). Vail Venture assigns probabilities of 0.20,0.50, and 0.30 , respectively, to the three possible outcomes. Following are the three cash flow scenarios or outcomes for the Black Hawk Products investment that Vail Venture expects to exit at the end of five years. PART A A. Calculate the present value of each scenario or outcome for Black Hawk Products. B. Calculate the weighted average of the present values for the three scenarios. What is the total equity value for the Black Hawk Products venture? C. Determine the acquired percentage of final ownership of Black Hawk Products that Vail Venture Investors would need for its $5 million proposed investment
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