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For the questions below, please state whether each of the following boost / hurt / have no impact on IRR & MOIC. For reference, the

For the questions below, please state whether each of the following boost / hurt / have no impact on IRR & MOIC. For reference, the acquistion of XYZCo occurs at the end of 12/31/23 and exits at 12/31/28 both multiples off of NFY Revenue or EBITDA.
Question 4: The federal reserve continues to hike interest rates and XYZCo's cost of debt rises from 10% to 13% between FY25 and FY26. The cost of debt declines back to the original 10% by FY27.
Question 5: The strategic buyer negotiates for $100M of the purchase price to be put in escrow, only to be released contingent on XYZCo successfully growing 20% post-acquisition in FY29. XYZCo then grows 23% in FY29.
Question 6: PE Sponsor negotiates to receive 5% of XYZCo EBITDA each year from 2030 to 2040 as a residual payment (all incremental to the original 5x revenue purchase price)

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