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You have developed a medical gadget that allows the user to measure the level of Vitamin D in their blood using an infrared scanning technology.
You have developed a medical gadget that allows the user to measure the level of Vitamin D in their blood using an infrared scanning technology. You have started a company to commercialize this product and you believe that the current market value of your company is $25 million. You need to attract investors and raise money to start producing, marketing, and selling this product. Suppose you go on Shark Tank and Mark Cuban offers you the following deal: He gives you $1 million now, $1 million in three years, and $2 million in five years, and in return, he receives 10% of equity in your firm. Assume the interest rate is 12%. Calculate the value of Mark's offer and determine how much extra is Mark offering you relative to your firm value? If you think Mark is paying you less than what he should, enter your answer with a negative sign. Enter your answer in millions without $ sign. Example: enter 0.743 for $743,637.67
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