VC method. Complete the following steps to determine a valuation using the VC Method. For this assume the following: A target investor return of 40% / year over 5 years Use a sales multiple of 2x Use their projected year 5 sales (assume they hit their annual recurring revenue (ARR) target in 2028 for year 5 sales but like most investors, give this number a haircut. Specifically, cut their projected 2028 sales in half. Use this for exit/terminal value Assume they are raising $2,000,000 Target investor return is : 40% over 5 years sales multiple: 2x projected year ARR: $5,000,000 Haircut on ARR: 50% invest amount: $2,000,000 Discount ARR: 5,000,000x0.5= $2,500,000 present value= exit value/ (1.40)^ 5,000,000/5.378= 929,000 What equity percent would they have to give up? you should get a percentage between .05 and .15. Show your calculations! What is the post-money valuation? Show your calculations! What is the pre-money valuation? Show your calculations