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

question 24

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%
• B) 20.2%
• C) 25%
• D) 28.8%
• E) 32%

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Definitions:

Multi-Directional Development

The concept that human development occurs in various directions, indicating gains, losses, growth, and decline across the lifespan.

Discontinuity

A break or gap in a sequence, process, or in continuous development, often leading to a significant change or variation.

Larva

The immature, wingless, and often wormlike feeding stage of an insect that undergoes complete metamorphosis.

Multi-Contextual

Pertaining to or involving multiple contexts or environments, emphasizing the variation of experiences across different settings.