Venture Capitalists Demand High Rates of Return for Their Investment

question 5

True/False

Venture capitalists demand high rates of return for their investment in the new venture. 

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Definitions:

Net Present Value

The current value of a series of future cash flows, discounted back to the present using a specific rate.

AAR

Average Annual Return, represents the arithmetic mean of a series of annual returns, offering a straightforward way of understanding an investment's performance over time.

Payback

The time it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment.