Question 1 (6 points) You are a young IT company specializing in software production, and you are facing challenges in a dynamically changing environment. As a result you are currently losing customers fast. You face several option to tackle the issue. 1. Do nothing: sales are estimated to be 140.000 from year 1 forever, and the costs of running your business including all expenses are 30.000. Your cash flow thus is 110.000 (sales - all expenses), 2. Your further option is to sell the company at just 10.000 less than the fair value you calculated in option 1, after running the business for one year. You are informed by the investor that they are interested to buy at this price only at the end of year 1, and in addition they let you take all the cash flows of year 1. 3. Finally, you consider to take over another promising company. However, in this case you will need a new manager. Your team of analysts have also calculated that you will have annual growth of 10 percent in total cash flow that will start after year 1 (already in year 2 you have 110.000*1.1 cash flow) and will stop from year 5. After this period, your new manager must be compensated an additional 10.000 annually forever