Using your required rate of return as the discount rate

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Reference no: EM131176430

StartCo is an early stage company whose financial plans call for the company to be sold in 5 years, at a valuation of $10 million. You are considering an investment of $100,000 in StartCo; you like the company but feel that it is fairly risky venture, so you want a 40% annual return on your investment.

What is the present value of StartCo, using your required rate of return as the discount rate?

Reference no: EM131176430

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