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:

Conserve Water

The practice of using water efficiently to reduce unnecessary waste and to ensure its availability for future generations.

Descriptive Norms

Refers to the perception of behaviors that are typical or normal within a specific group, guiding members' actions based on what is commonly done.

Injunctive Norms

Social norms that are perceived as approved or disapproved behaviors by a cultural or social group, guiding individuals on what they ought to do.

Focus Theory

An approach in psychology that examines how individuals concentrate their attention or energy on specific thoughts, tasks, or goals and the impact of this focus on behavior and cognition.