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You have raised $200,000 from Angel investors to start an auto body shop. You want to keep the business in the family rather than selling

You have raised $200,000 from Angel investors to start an auto body shop. You want to keep the business in the family rather than selling it so you promise your investors that after youve saved up enough money, youll buy all their stock back at a price that will give them a 20% annual rate of return. You think you will be able to do this after four years, but you dont meet your initial targets and it takes 8 years before you have enough money saved to buy them out. Approximately how much more money does this delay cost you? What if you buy out half their equity in year 4, and the other half in year 8 how does that change the numbers? Explain what causes the difference in the calculations and how this should impact your plans.

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