Question
ABC Fund has committed to invest 10 Million. Just for simplicity we can assume that there are no management fees and carry. On first day
ABC Fund has committed to invest 10 Million. Just for simplicity we can assume that there are no management fees and carry. On first day of the fund ABC calls for 1 million, and at the end of first year ABC gets back 3 million. Staring of next year, it calls 4 million more. At the end of second year fund gets back 4 million more. Now at the beginning of third year ABC calls for rest of the committed fund. At the end of third year fund exits this third investment and gets 7 million back. Based on this information develop Internal Rate of Return equation for these three years of ABC Fund
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started