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You are a venture capitalist, who is interested in investing in Lam Media, a social media company. You expect revenues to be $600 million in

You are a venture capitalist, who is interested in investing in Lam Media, a social media company. You expect revenues to be $600 million in 3 years and believe that you can sell the company for three times revenues at the end of year 3. The cost of capital for the company is 15%, it has no cash or debt and there is a 20% chance that the firm will not make it (in which case you will get nothing for the assets). Ignoring cash flows in the next 3 years, what is your estimate of the value of equity in the company today (in millions)?


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