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

question 63

Multiple Choice

A venture is expected to have an exit value of $10,000,000 five years from now. If venture investors invest $1,000,000 now, and expect a 20% compounded rate of return on their investment, what portion of the exit value would they need?

• A)10.5%
• B)20.1%
• C)24.9%
• D)28.8%

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