18.3 DGI, a new firm in formation, has developed a set of projections shown in Table 18.21. The expected and pessimistic cases are shown. The harvest of the firm is planned for the fifth year. The firm is seeking an initial investment of $1 million before launching in year 1 J as well as a commitment for $1 million at die end of year 2 for expansion. Acting as an adviser to a venture capital firm, prepare an offer of investment to' submit to DGI. Assume the PE (price earnings) ' ratio in DGFs industry is *0;;