1. Suppose that the first cash flow of a venture is expected in Year 7, and expected to be $4,143,492. Cash flows will grow at a rate of 5% after that. Find the present value of the venture in dollars (at Year 0) assuming a discount rate of 27%.
2. Suppose a venture's first cash flow is expected in Year 4, and the cash flow is expected to be 4,211,042. A comparable firm has earnings of 60,236,681 and a market cap of 695,923,007. Assuming a discount rate of 19%, find the present value (at Year 0) of the firm in dollars.