SW Inc., is a startup company that manufactures, and distributes environment friendly iPhone covers. Chris, the CEO of SW Inc., was selected to present at the Shark Tank TV show. Chris pitched the company at the show. He offered 40% equity stake in the company in return for $300,000 in investment. Investors were impressed by the presentation and three of them made offers. Jim was willing to give $300,000 in return for 50% equity stake. Kevin offered to give $300,000 for 10% royalty on all sales and was willing to have no equity in return. Arlene offered to give $300,000 for 2% royalty on all sales and 40% equity stake. Chris has access to the latest representative income statement of SW as shown below: SW Inc., Income Statement Sales 100,000 COGS 37.000 Grossprofit 63,000 SGEA28,000 Using the above information to answer the following: Based on your analysis which offer leads to the lowest payout and hence is most profitable for the entrepreneur (Chris)? Using the above information to answer the following: Based on your analysis which offer leads to the lowest payout and hence is most profitable for the entrepreneur (Chris)? Jim Arlene Kevin Jim and Arlene offers have the same payout