Problem
Incredible Eats featured on ABC Shark Tank:
Let's put some present value calculations to work here.
Watch the YouTube Video "Shark Tank US | Four Sharks Fight For A Deal With Incredible Eats" about Incredible Eats featured on Shark Tank and share with the class your best estimate of what the fair market value/price of the company is based on the deal that the entrepreneur, Dinesh Tadepalli, ended up making with Lori.
1. At what valuation do Kevin and Mark see the company based on their offers?
2. Restate the number of edible spoons that he already sold and calculate what the net income the entrepreneur made with the spoons he has already sold. How much did he sell the individual spoon for?
3. Now share with the class your thoughts on the company. Given that plastic spoons (and other cutlery) sell for 1c to 2c a piece - will this company have a chance?
4. Would you have invested, if you had been one of the sharks?