What are the difficulties and challenges that investors face in valuing early-stage companies? 2. Describe the difference between pre-money and post-money valuation. In what settings are investors most likely to focus on pre-money valuation, and when on post-money valuation? 3. What are appropriate multiples to use when comparing two companies with different capital structures and varying levels of capital expenditures? Which are not? 4. Under what circumstances is it more useful to use the APV method than the NPV method? 5. What are the criticisms of using high discount rates for the Venture Capital method? How do venture capitalists justify their use? 6. Under what circumstances is using the option pricing model more useful than the discounted cash-flow method