Question: PLEASE SHOW WORK AND FORMULAS! You are analyzing the value of a potential unicorn your Investment Banker is trying to sell you on. He says

PLEASE SHOW WORK AND FORMULAS! You are analyzing the value of aPLEASE SHOW WORK AND FORMULAS!

You are analyzing the value of a potential unicorn your Investment Banker is trying to sell you on. He says that its worth today is $1 billion. While you are comfortable with the relative accuracy of the near term cash flows, you are interested in figuring out how much he is expecting the unicorn to be worth at the end of year 4. Assume a 15% discount rate. You expect its cash flows over the next 4 years to be as shown below. Year Cash flows -20M -10M OHNM * 0 12M 40M What is this unicorn's future value at the end of year 4? * A). $ 2,064,672 B). $997,064,672 C). $1,475,395,126 D). $1,695,553,239 E). $1,756,892,730 You are analyzing the value of a potential unicorn your Investment Banker is trying to sell you on. He says that its worth today is $1 billion. While you are comfortable with the relative accuracy of the near term cash flows, you are interested in figuring out how much he is expecting the unicorn to be worth at the end of year 4. Assume a 15% discount rate. You expect its cash flows over the next 4 years to be as shown below. Year Cash flows -20M -10M OHNM * 0 12M 40M What is this unicorn's future value at the end of year 4? * A). $ 2,064,672 B). $997,064,672 C). $1,475,395,126 D). $1,695,553,239 E). $1,756,892,730

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