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Question 1 You are a venture capitalist considering two start-up businesses with the same level of risk and time frame of 5 years and the

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Question 1 You are a venture capitalist considering two start-up businesses with the same level of risk and time frame of 5 years and the expected associated cash flow streams. Initial Investment Value of end of project (Year 5) Business X $2,500,000 $9,000,000 Business $3,500,000 $12,000,000 If you can only invest in one of the businesses, which would you recommend? Show workings to justify your answer. 1 A B

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