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Glenn Owens' attractive technology start - up requires $ 1 0 million to launch. Projections show earnings of $ 1 0 million and sales of

Glenn Owens' attractive technology start-up requires $10 million to launch. Projections show earnings of $10 million and sales of $80 million in the fifth year. The venture capital firm expects a return of 50 percent per year for the five-year period prior to an IPO. What ownership portion should the venture capitalist expect to receive? Perform a sensitivity analysis on the valuation and rate of return.

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