Part $2$ VC method. Complete the following steps to determine a valuation using the VC Method. This problem is set up to follow the Version $1$ of the VC Method. For this assume the following:

$$ A target investor return of $40\%/$ year over $5$ years

$$ A sales multiple of $2$x and projected year $5$ sales of $$40,000,000($use this for exit$/$terminal value $$ see the Lecture Notes and the Help Video!$)$

$$ They are raising $$2,000,000.$

A$.$ What equity percent would they have to give up$?$ NOTE: if you get a strange, odd number here $($too big or too small$)$ you should re$-$visit your calculations $$ you should get a percentage between $\mathrm{.}05$ and $\mathrm{.}25.$ Show your calculations!

B$.$ What is the post$-$money valuation? Show your calculations!

C$.$ What is the pre$-$money valuation? Show your calculations!