Q1. If you wanted to attract an investor to purchase shares in your start-up, you need to make an offer that is sufficiently attractive. Assuming the hurdle rate is 25% p.a. or over 3 years a 75% return on funds invested (ROI), what is the amount to be repaid over three years?

HINT: If $100,000 is required to fund the business then investor is looking for a return of $25,000 per year and $75,000 over 3 years.

Q2. Assuming the company achieves its projected profit in the first year; what % of the business profit does this represent?

Q1 answer, based off borrowing 20k. Answer $15k