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show me the work please $2,000,000 of required capital is funded as follows: 95% ($1.900,000) by the investors (Limited Partners) and 5% ($100,000) by the
show me the work please
$2,000,000 of required capital is funded as follows: 95% ($1.900,000) by the investors (Limited Partners) and 5% ($100,000) by the operating (General) Partner. The agreement provides that available cash flow follows a promote (carried interest) waterfall structure and is distributed as follows: 1. 8% annual preferred return payable to all partners on their equity contributed 2. Return of capital contributed 3. Remaining available cash flow distributed 80% to investors (Limited Partners) and 20% to the operating (General) partner There is no cash flow available until the sale of the investment to distribute any cash. At the end of 1 year, the investment is sold and $2,080,000 is available for distribution to the limited and general partners. a. What is the total $ amount of preferred return payable to ALL of the partners (Limited and General)Step by Step Solution
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