Use the following information for the next question also. Assume that there has not been a discussion specifically about valuation and the venture capitalist offers to invest the $$400,000$ required by the company in return for $40\%$ of the equity.

The total value of the equity in the company following the new investment will be equal to:

$$ $$800,000$

$$1,000,000$

$$1,200,000$

$$ $$1,350,000$