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Connor McDavid is the greatest hockey player of all time....and because he is so awesome, the Oilers have paid him a lot of money. Connor has been very smart in saving some of that money, knowing that he might not play hockey forever. Connor has set aside $2,000,000 of cash in his bank account thinking he might be able to invest it to earn a few extra bucks. He expects that he should be able to earn 30% (per annum) on his ideas. Connor is trying to decide what might be best for him to invest in. He doesn't know much about venture investing so he has decided to hire FIN 4415 students at NAIT to help him do the assessments. The three opportunities he is considering are below: Opportunity Estimated Annual Revenue Multiple Anticipated time to Exit 2x Hockey Pool Tracking App McDavid's Musical Toothbrushes McDavid Hair Salon $10,000,000 $7,000,000 3x 3 years 6 years 4 years $5,000,000 5X A. Using the comparable valuation methop (revenue multiples), what is the forecasted exit values of each of the ventures? (Do not use commas to separate thousands, eg. 2000000). A. Using the comparable valuation method (revenue multiples), what is the forecasted exit values of each of the ventures? (Do not use commas to separate thousands, eg. 2000000) Forecasted Exit Value Opportunity Hockey Pool Tracking App McDavid's Musical Toothbrushes McDavid Hair Salon B. What is the present value of the anticipated exit of each of the opportunities? (Do not use commas to separate thousands, use 2 decimals, eg. 2000000) Opportunity Forecasted Exit Value Hockey Pool Tracking App McDavid's Musical Toothbrushes McDavid Hair Salon s C. If Connor wants to achieve his desired rate of return, how much equity should he take in each of the ventures, assuming that he only chooses to invest $1,000,000. (Use 2 decimals, leave the % out, eg. 24.78) Opportunity % ownership Hockey Pool Tracking App McDavid's Musical Toothbrushes McDavid Hair Salon 96

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