Determine the value of the nydeli at the end of four years

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Question 1: A venture capitalist firm wants to invest $1.5 million in your NYDeli dot.com venture that you started six months ago. You do not expect to make a profit until year four when your net income is expected to be $3 million. The common stock of BioSystems, a "comparable" firm, currently trades in the over-the-counter market at $30 per share. BioSystems' net income for the most recent year was $300,000 and the firm has 150,000 shares of common stock outstanding. Apply the VC method to determine the value of the NYDeli at the end of four years.

Reference no: EM132496514

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