Your best friend is a successful sole proprietor. Per the most recent valuation, the FMV of his business is $$2$ million. He wants to grow the business and ask you to invest $$2$ million cash in exchange for $50\%$ share of the new business. Per the business plan, the company is expected to generate $($$$300,000)$ loss in year $1,($$$100,000)$ loss in year $2,$ $$100,000$ income in year $3,$ $$500,000$ income in year $4,$ and $$1$ million in year $5$ but there is no guarantee for such future performance.