A VC firm is considering two different structures for its new $100M fund. Both structures would have management fees of 2.5 percent per year (on committed capital) for all ten years. The fund would receive a 25 percent carry with a basis of all committed capital. if the GVM =4, then what is VM and GP%?

You want to find the NPV of a two-period (two-year) project. The free cash flow (FCF) for the initial period (year 0) is -$100,000, for year 1 it is $50,000, while for the second year it is $80,000. It is financed 60% through a bank loan (which lasts two years) and 40% through the issuance of shares.The interest rate of the loan (for $100,000) is 2% bimonthly overdue.The interest rate of the loan (for $100,000) is 2%, due bimonthly. The tax rate is 35%. For the equity issue, the risk-free rate is estimated to be 3% overdue trimester, and the expected market rate of return is 5% overdue trimester, and the beta to be used for the project is 1.2. The NPV of this project is: For the issuance of shares, the risk-free rate is estimated to be 3% Quarterly Past Due, and the expected market rate of return is 5% Quarterly Past Due, and the beta to be used for the project is 1.2. The NPV of this project is:

In the above $110K allocation problem, you decided to allocate 30% weight in A, 50% weight in B, 20% weight in C, and you want to find its AVG return. Which of the following is the appropriate method to find the mean (AVG) return on the $100K fund invested?   a. Weighted Average (WAVG )   b. Simple Average   c. Geometric Average   d. Arithmetic Average

A firm has two possible investments with the following cash inflows. Each investment costs $435, and the cost of capital is seven percent. Use Appendix B and Appendix D to answer the questions. Assume that the investments are not mutually exclusive and there are no budget restrictions.     Cash Inflows Year A   B 1 $ 270 $ 170 2   140   170 3   100   170   Based on each investment’s net present value, which investment(s) should the firm make? Use a minus sign to enter negative values, if any. Round your answers to the nearest dollar. Investment A: $   Investment B: $   The firm should make  . Based on each investment’s internal rate of return, which investment(s) should the firm make? Round your answers to the nearest whole number. Investment A:   % Investment B:   % The firm should make  . Is this the same answer you obtained in part b? It  the same answer as obtained in part b. If the cost of capital were to increase to 9 percent, which investment(s) should the firm…

Loaded-Up Fund charges a 12b-1 fee of 0.75% and maintains an expense ratio of 0.50%. Economy Fund charges a front-end load of 3.0%, but has no 12b-1 fee and has an expense ratio of 0.25%. Assume the rate of return on both funds' portfolios (before any fees) is 10% per year. Required: How much will an investment of $1,000 in each fund grow to after: Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. a. 1 year b. 3 years c. 10 years Loaded-Up Fund Economy Fund

High Growth Fund has a front load of 5% and expected return of 14.5%. Normal Fund has no load. And expected return of 13.8%. Which fund would you hold if you expect to hold the fund for 5 years? How about holding the fund for 10 years? Please show how to solve in excel

Answer the following lettered questions on the basis of the information in this table: a. If the interest-rate cost of funds is 8 percent, what will be the optimal amount of R&D spending for this firm?b. Explain why $20 million of R&D spending will not be optimal.c. Why won’t $60 million be optimal either?

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 9 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively.                  Time: 0 1 2 3 4 5 6 Cash flow: −$7,100 $1,000 $2,200 $1,400 $1,400 $1,200 $1,000   Use the IRR decision rule to evaluate this project. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)   Should it be accepted or rejected?multiple choice accepted rejected

A firm is faced with four investment proposals, A, B, C, and D, having the cash flow profiles shown below. Proposals A and C are mutually exclusive, and Proposal D is contingent on Proposal B being chosen. Currently, $750,000 is available for investment and the firm has stipulated a MARR of 10%. Determine which alternative the decision maker should select. Use the internal rate of return method.