A start-up chemical company has an average cost of capital of 15% per year. Additionally, it has a long-term goal of making at least a 20% per year rate of return on all investments; however, because of market opportunity the ROR can be reduced for the current project by 3%. If the company acquired $50 million in venture capital, how much did it have to earn in the first year?
A start-up chemical company has an average cost of capital of 15% per year.
Additionally, it has a long-term goal of making at least a 20% per year
all investments; however, because of market opportunity the ROR can be reduced for the
current project by 3%. If the company acquired $50 million in venture capital, how much
did it have to earn in the first year?
A rate of return is the net gain or loss of an investment over a specified time period expressed as a percentage of the initial cost of the investment. A rate of return is the net gain or loss of an investment over a specified time period expressed as a percentage of the initial cost of the investment.
A situation in which a business determines that a product, service, or other item that consumers may want or require is not being supplied by competitors.A situation in which a company can meet a previously unsatisfied customer need before its competitors.
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