1Suppose venture capital firm GSB partners raised $ 50million of committed capital. Each year over the 1111-year life of thefund, 2.0 %2.0% of this committed capital will be used to payGSB's management fee. As is typical in the venture capitalindustry, GSB will only invest $39.00 million(committed capital less lifetime managementfees). At the end of 1111 years the investments made by the fund are worth $ 450million. GSB also charges 15% carried interest on the profits of the fund(net of managementfees). a. Assuming the $39.00 million of invested capital is investedimmediately, and all proceeds were received at the end of 11years, what is the IRR of the investments GSB partnersmade? Thatis, compute the IRR ignoring all management fees. b. Ofcourse, as aninvestor, or limitedpartner, you are more interested in your ownIRR, that is the IRR including all fees paid. Assuming that investors gave GSB partners the full $50 million upfront, what is the IRR forGSB's limited partners(that is, the IRR net of all feespaid).

a. Assuming the $39.00 million of invested capital is investedimmediately, and all proceeds were received at the end of 11 years, what is the IRR of the investments GSB partnersmade? Thatis, compute the IRR ignoring all management fees.The IRR in this case _____%. (Round to two decimalplaces.)

b. Ofcourse, as aninvestor, or limitedpartner, you are more interested in your ownIRR, that is the IRR including all fees paid. Assuming that investors gave GSB partners the full $ 50million upfront, what is the IRR forGSB's limited partners(that is, the IRR net of all feespaid).The profit for the LP will be $______million. (Round to two decimalplaces.)

The carried interest will be $_______million. (Round to two decimalplaces.)

The LP payoff will be $________. (Round to two decimalplaces.)

The IRR in this case is_______ %. (Round to two decimalplaces.)