The CEO of a startup company thinks the exit will be an IPO ten years from now, valued at 20x their tenth-year earnings, which are forecasted to be $50mm; when you ask him why 20x, he says it's because that equals $1b. The CFO thinks the exit is more likely to be a sale of the company five years from now to ONeill, a sporting goods company which is run by SJSU graduates, for about $500mm, which is what ONeill recently paid to purchase a maker of solar-heated wetsuits; however, that company had $250mm in sales at the time O'Neill bought it. Additionally, using a 20% discount rate, calculate the differences in current valuation that their two different strategies would result in.