1. In 2010, EBV ventures invests $100,000 in CDB with the post-money valuation of $2 per share. In 2010, CDB is preparing IPO in 3 years. Expected earnings in 2012 is $20 million. PER of benchmark companies at the time of IPO is expected to be 35.

Additional expectation for the IPO is as follows:

• The number of existing shares = 1 million shares
• Employee stock options: 200,000 shares
• New issue = 20% of existing shares
• IPO discount = 30%

Given that EBV ventures will sell entire shares at the IPO price, what is the expected IRR and TVPI?