A Venture Is Expected to Have an Exit Value of $10,000,000

question 9

Multiple Choice

A venture is expected to have an exit value of $10,000,000 two years from now. If venture investors invest $2,000,000 now, and expect a 20% compounded rate of return on their investment, what portion of the exit value would they need?

• A)10.0%
• B)20.2%
• C)25.0%
• D)28.8%

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Definitions:

Genetic Relation

The biological linkage or connection between individuals, determined by shared genetic material or ancestry.

Collective Guilt

Emotional experience where individuals feel responsible for the actions of a group they identify with, even if they didn't partake in those actions directly.

Just World Phenomenon

The cognitive bias that a person's actions always bring morally fair and fitting consequences to that person.

Kin Selection

A strategy in evolution where an organism's focus is on enhancing the reproductive prospects of its relatives, even if it results in a compromise to its own survival and ability to reproduce.