Make sure that your computer corrects circular references. Go to File Options Formulas.

Use the attached file to start with activity 4. Make sure that your computer corrects circular references. Go to File àOptions à Formulas. The Workbook Calculation should be set to "Automatic" and the option Enable Iterative calculation should be check marked. 

We will assume in this exercise that the venture is growing fast. Specifically, the input worksheet, set the growth in sales to be 40% in 2018, 30% in 2019, 20% in 2020, 10% in 2021, 8% in 2022, and 6% in 2023 and 2024 respectively.

Then go to the worksheet "Proj. of Financials & Valuation". Modify this worksheet to consider the following:

• The company at the end of 2017 is a private entity with a sole owner (the entrepreneur) who has 100 percent ownership.
• If AFN > 0, the company will issue new equity instead of borrowing money short term. Assume further that this money comes from a new round of equity financing. Modify the balance sheet to consider these new assumption. I suggest you open a new equity account to show the equity allocation of the new investor. If for example, the AFN is $100 in 2018, assume that an external investor will finance this $100 amount.
• Calculate during the explicit period, the percentage of ownership in the venture of this new investor for each of the years from 2018 to 2023.