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Essаy 2 (20 pоints) Scenаriо: Vаluing FreshRоots, an Urban Agriculture Startup FreshRoots is a growing urban farming startup that installs and operates hydroponic vertical farms in vacant warehouse spaces. Their business model is to sell fresh greens directly to grocery stores and local restaurants. The founders want to raise $7 million in a Series A round. To help support negotiations, the owners hired two respected consulting firms to provide valuation assessments: Firm A used a discounted cash flow (DCF) method assuming extremely high and uninterrupted growth of 70% annually for 10 years, ignoring any realistic competitive or regulatory pressures in urban agriculture. Their terminal growth rate was set at 12%, which is higher than industry norms, and they used a discount rate of 8%, which may be too low for an early-stage, risky business. Firm B used a comparable company multiple approach, identifying three publicly traded agriculture-technology firms with very different business models (for example, global irrigation systems) and applying their multiples directly to FreshRoots without adjusting for scale, private-company discount, or the urban farming niche. Neither firm performed a thorough qualitative analysis of FreshRoots’ team capability, market entry barriers, customer stickiness, or local policy factors. Your Task As a third-party advisor, the founders have asked you to critically evaluate these two valuation approaches. Answer the following questions in essay format (about 600–700 words): Identify and explain the flawed assumptions made by Firm A and Firm B in their methods, clearly stating why these weaken the credibility of their valuations. Discuss which firm’s errors you consider more serious, and justify your reasoning. Outline the qualitative factors that should complement any valuation model to improve reliability in a startup context like FreshRoots. Support your discussion with concepts from the valuation module, but you do not need to provide a numeric valuation or do calculations.