The entrepreneurs who created MocsTech Corporation are interested in the valuation of their company. They have forecasted annual cash flows for the next five years: Year Cash Flow 1 -$100,000 2 -$15,000 3 $500,000 4 $750,000 5 $1,000,000 The forecasted profits for years 1 and 2 are negative because the venture will not be profitable until year 3. Assume that MocsTech's Year 6 cash flows are forecasted to be $1,500,000 and are expected to grow at a 10 percent rate thereafter. Assume that investors will initially want a 30% rate of return on their investment but that this rate of return will drop to 15% beginning in Year 6 (when the venture will be considered a mature company). Note: make sure to look at the practice problems for tips. Set up the equation that you would calculate to determine the venture's valuation (present value). You do not need to calculate the final valuation (unless you want to) -- you just need to set up the equation. Let's say that the company was valued at $5,000,000. If an investor wanted to invest $2,000,000 in the company, how much equity would he/she receive in exchange for the investment

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

answercountries with higher real income per capita tend to have higher levels of this index.