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As an entrepreneur, you approach a venture capitalist seeking cash for funding your business. He does not want any equity in your firm, but instead
As an entrepreneur, you approach a venture capitalist seeking cash for funding your business. He does not want any equity in your firm, but instead he wants a yearly royalty forever. He wants a 9.00% royalty on your yearly revenues after the deal. You project to generate annual revenues of $91,200.00. The venture capitalist wants a 27.00% return on all his investments.
What is the yearly cash flow from this deal for the venture capitalist?
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