What is the number N > 1,000 of warrants that the VC must receive to obtain an IRR of 22.5%? Choose the value that is closest to the correct answer.

	a.	6,000
	b.	8,000
	c.	10,000
	d.	12,000
	e.	14,000

Will the LBO occur if the VC receive these number of warrants?

	a.	Yes
	b.	No

What is the IRR that the MG will receive from their purchase of the company, given that they invest $500 on 1/1/85, and sell all their shares on 12/31/90 just after the VC exercise their warrants? Choose the value that is closest to the correct answer.

	a.	75%
	b.	80%
	c.	85%
	d.	90%
	e.	95%
	f.	100%