As technology venture CEO, you are presenting your software company's seed round to a potential VC associate, who is a partner at a VC fund. According to your team, you have 502users this year (year 1) with each paying $150/mo.for your software-as-a-service product.

Your CFO says your annual expenses are around $225k annually and projected to rise 12.5% each year(year on year increase). Good news is, your users will experience year-on-year growthof25% in year 2, and 30% on year 3 and by 35% in the fourth year. More importantly, in year 3 and 4, you are improving the product and can charge customers $250 a month.

PLEASE WRITE OUT RESPONSE + NEED TO SHOW WORK ON EXCEL!!!!!

Assuming 4-year projection time-horizon, what is:

-Your gross burn (in $) for year 3 [show as positive value, if -225,000, write as 225000]

-Your profit margin (%) for year 2 [if 52%, write 0.52]

-Assuming your industry average P/E ratio or multiplier, what is your terminal value ($) for year 4 as an exit valuation? [if 4.54MM, write out full to nearest dollar, e.g. 4542314]

Appendix:

ARR Multiplier Market Cap

Medical Equip. 21.5 22B

Defense 14.6 14B

Retail 10.44 24B

Software 13.75 45B

Energy 18.72 13B