[Present Value Valuation Concepts] Assume the forecasted cash flows presented in Problem #2 in the Textbook for the TecOne Corporation venture also hold for the LowTec venture. However, investors in LowTec have an expected rate of return of 30 percent on their investment until Year 6 when the rate of return is expected to drop to 18 percent. The perpetuity growth rate for cash flows after Year 6 is expected to be 7 percent.

A. Determine the present value for the LowTec venture.

B. If an outside investor offers to invest $1,500,000 dollars today, what percentage ownership in LowTec should be given to the new investor?

Annual Cash Flow for next 5 years

1: -50,000

2: -20,000

3: 100,000

4: 400,000

5: 800,000

Make sure that the formulas, steps for calculation and explanation should be included