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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Definitions:

Decreased Peristalsis

A reduction in the wave-like muscle contractions of the gastrointestinal tract, which can slow or impede the movement of contents through the digestive system.

Urinary Output

The volume of urine expelled from the body over a given period of time, used as an indicator of kidney function and hydration status.

Altered Metabolic Function

Changes or abnormalities in the body's chemical processes and energy production, which can affect overall health and well-being.

Bed Rest

A medically recommended period of staying in bed to promote healing or prevent worsening of a medical condition.