Jest Keep Movin (JKM) is a SEED STAGE web-oriented entertainment company which owns important intellectual property. JKMs founders, all technology experts in the relevant field, are anticipating accumulation of a dot-com fortune. They believe their unique intellectual property and industry expertise will drive the company to a $ 5,000,000 Year 3 valuation with a one-time initial (Year 0today) $200,000 investment in angel financing.

In contrast, similar (comparable) dot-comers in JKMs niche have required MULTI-STAGE financing amounting of $1,000,000 to achieve comparable multiples. The founders own 100,000 shares and are so confident in their business plan that they are willing to grant the angels a 100% annualized return on the start-up seed money $ 200,000 investment.

1. What DOLLAR return do the angels expect at the end of Year 3?