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k. Alma.cominvestors have been approached by an outside investor who wants to invest $3.0M in...

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Accounting

k. Alma.cominvestors have been approached by an outside investor who wants to invest $3.0M in the venture at the end of 2020. What percentage of ownership in the venture should ALMA.com investors give up to the outside investor for a $3.0M new investment? Alma.com financial analysts predict that Operating Cash Flows are expected to be $0.21M in 2021, $0.55M in 2022, $0.60M in 2023 and $0.76M in 2024. The analysts further predict that the companys cash flows are expected to grow at 1% annual rate indefinitely beyond 2024. [Hint: Use Projected Free Cash Flow].

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