Talltree ventures has raised their $250M fund, Talltree Ventures IV, with terms as given in Appending 2.B of this chapter (below). Construct an example of fund performance where the clawback provision would be triggered. In this example, compute carried interest paid in each year, and show the total amount that must be paid back by the GPS upon liquidation of the fund. committed capital 250 gross returns 10.0 % (for most years) carry 20.0% management fee 2.0% priority return 8.0%

Talltree ventures has raised their $250M fund, Talltree Ventures IV, with terms as given in Appending 2.B of this chapter (below). Construct an example of fund performance where the clawback provision would be triggered. In this example, compute carried interest paid in each year, and show the total amount that must be paid back by the GPS upon liquidation of the fund. committed capital 250 gross returns 10.0 % (for most years) carry 20.0% management fee 2.0% priority return 8.0%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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At the beginning of the year, an investment fund was established with an initial deposit of 500 . A deposit 1000 is made at the end of each month for the first six months. Starting from theend of month 7, a withdrawal of 300 is made at the end of each month for 5 months for a total of 5 withdrawals. The amount in the fund at the end of the year is 12,500. Calculate the dollar-weighted(money-weighted) yield rate earned by the fund during the year.
What equal annual series of payments must be paid into a sinking fund in order to accumulate each of the following given amounts?(a) $28,000 in 12 years at 6% compounded annually.(b)$21,000 in 10 years at 8% compounded annually. (c) $10,000 in 20 years at 7% compounded annually.(d) $15,000 in 11 years at 9% compounded annually.
Labeau Products, Ltd., of Perth, Australia, has $35,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Invest inProject X Invest inProject Y Investment required $ 35,000 $ 35,000 Annual cash inflows $ 12,000 Single cash inflow at the end of 6 years $ 90,000 Life of the project 6 years 6 years The company’s discount rate is 18%. Required: 1. Compute the net present value of Project X. 2. Compute the net present value of Project Y. 3. Which project would you recommend the company accept?
Labeau Products, Limited, of Perth, Australia, has $21,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Required: 1. Compute the net present value of Project X. 2. Compute the net present value of Project Y. 3. Which project would you recommend the company accept? Invest in Project X Investment required Annual cash inflows Single cash inflow at the end of 6 years Life of the project The company's discount rate is 18%. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required 1 Required 2 Required 3 $ 21,000 $ 8,000 6 years Complete this question by entering your answers in the tabs below. Invest in Project Y $ 21,000 $ 50,000 6 years Compute the net present value of Project X. (Negative amounts should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount.) Net present value
12. Assume that the DPI of a 10-year fund at the end of its 4th year is 1.1x and that, by that time, $150 million of its $200 million committed capital has been called. The fund follows a standard 2/20 fee structure (European way). What has been the total amount of distributions by the fund by the end of its 4th year?
A sinking fund is generated for the recovery of bond of $1000000 at the end of 25 years. How much money should be given out of profit each year for the sinking fund, if the investment could earn interest of 4% per annum..?
Sean's investment of $81,400.00 in a fund matured to $155,777.80 in 8 years. If the interest in the fund is compounded semi-annually, calculate the following rounded to two decimal places. a. Periodic interest rate (i)(i) % b. Nominal interest rate (j)
Labeau Products, Ltd., of Perth, Australia, has $35,000 to invest. The company is trying to decide betweentwo alternative uses for the funds as follows:Invest in Invest inProject X Project YInvestment required ...................................... $35,000 $35,000Annual cash inflows ...................................... $9,000Single cash inflow at the end of 10 years ..... $150,000Life of the project .......................................... 10 years 10 yearsThe company’s discount rate is 18%.Required:(Ignore income taxes.) Which alternative would you recommend that the company accept? Show all computations using the net present value approach. Prepare separate computations for each project.
Cargojet Corp. is preparing for the replacement of one of its jets in three years by making payments to a sinking fund at the beginning of every six months for the next three years. The fund earns 6% compounded semiannually, and the capital required in three years is $750,000. What is the size of the semiannual payment made to the sinking fund? __________ How much of the maturity value of the fund will be interest? __________ Construct a partial sinking fund schedule showing details of the first two and the last two payments and totals. Round the sinking fund payments, interest payments and increases in the fund to the nearest dollar.
Swifty Corporation, having recently issued a $20,139,700, 15-year bond issue, is committed to make annual sinking fund deposi of $616,500. The deposits are made on the last day of each year and yield a return of 10%. Click here to view factor tables. Will the fund at the end of 15 years be sufficient to retire the bonds? Future value of an ordinary annuity Will funds be sufficient?
The management of Peridot Inc. is submitting a proposal to the Board of Directors for a new facility with the following cash flows. Year Cash flow 0 -214 1 52 2 61 3 74 4 82 The company's hurdle rate is 9%. internal rate of return for the proposed project is closest to: A. 10.15%. B. 9.06%. C. 9.00%.
On 1 January 2019, you invested £100 in a fund. A further £50 was invested on 1 January 2020. The values of the funds were: Date Fund Value (in £) 31 Dec 31 Dec 31 Dec 2018 2019 2020 0 105 242 Calculate the money-weighted rates of return over the period 1 January 2019 to 31 December 2020. Give your answer to 3 decimal places.

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