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If the VC's investment required return was 40% instead of 50%, what would his return be in dollar amount? PARAMETERS USING STAGED FINANCING Investor's investment

If the VC's investment required return was 40% instead of 50%, what would his return be in dollar amount?

PARAMETERS
USING STAGED FINANCING
Investor's investment 2,000,000 VC's investment - Stage 1 1,000,000
Required return 50% Required required return 50%
Number of years 5 Investor's return
VC's investment - Stage 2 1,000,000
Investor's return 15,187,500 Required return 30%
Investor's return
EBITDA in Year 5 6,000,000 Total return
Excess cash 300,000
Interest bearing debt 3,000,000 USING STAGED FINANCING
VC's investment - Stage 1 1,000,000
Multiple 5 Required required return 50%
Enterprise value 30,000,000 Investor's return 7,593,750 7,593,750
VC's investment - Stage 2 1,000,000
Equity in Year 5 27,300,000 Required return 30%
Investor's return 2,197,000 2,197,000
Total return 9,790,750

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