Vencap Enterprises Is Evaluating an Investment Opportunity That Can Be

Vencap Enterprises is evaluating an investment opportunity that can be purchased for $37,000. Further product development will require contributions of $30,000 in Year 1 and $10,000 in Year 2. Then returns of $20,000, $60,000, and $40,000 are expected in the three following years. Cost of capital is 15%. What price should Vencap offer for the investment opportunity if it requires a 17% return on investment?