Question
Theproviderof theoriginalangelfinancingloaned AKWebDevelopers$2,000,000at the end of1994. At the end of2001,AKrepaidthe$2,000,000 principal on the loan and gavehim500,000shares inlieuofinterest.At the end of2007,he sold the 500,000shares at an
Theproviderof theoriginalangelfinancingloaned AKWebDevelopers$2,000,000at the end of1994. At the end of2001,AKrepaidthe$2,000,000 principal on the loan and gavehim500,000shares inlieuofinterest.At the end of2007,he sold the 500,000shares at an averagepriceof$22.What was his rate ofreturnon theoriginalloan?Hint: Construct a time line of the cash flows, and find the internal rate of return.
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Contemporary Engineering Economics
Authors: Chan S. Park
5th edition
136118488, 978-8120342095, 8120342097, 978-0136118480
