1. What is the value of the firm under the NPV method? When estimating the FCFs, factor in the probability of failure to estimate the EXPECTED cash flows. Be clear about the assumptions you make and the inputs you use. You are encouraged to try alternative assumptions/inputs. But you should offer a final estimate of the valuation.
2. What is the value of the firm under the venture capital method? Discuss your key inputs such as the discount rate, terminal growth rate, etc. Can you provide a sensitivity analysis on selected key inputs. Take the possible future ownership dilution into consideration. Offer a guideline of expected dilution time and percentage of new shares issued.