If Venture Investors Invest $1,000,000 Now, Will Receive 25% of the Exit

question 33

Multiple Choice

If venture investors invest $1,000,000 now, will receive 25% of the exit value, and expect a 20% compounded rate of return on their investment, what is the approximate expected exit value at the end of five years?

• A)$9,950,000
• B)$2,490,000
• C)$4,980,000
• D)$7,470,000

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Definitions:

Lymphatic Nodules

Small, localized clusters of dense tissue within the lymphatic system that are important for immune responses.

Small Intestine

A part of the gastrointestinal tract between the stomach and large intestine that is involved in digestion and absorption of nutrients.

Skeletal Muscle

A type of striated muscle tissue that is attached to bones and is responsible for voluntary movements in the body.

Smooth Muscle

Involuntary, non-striated muscle found in walls of internal organs and blood vessels, controlling their movements and flow.