How much of excite must fund own

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Nigel confides that he could use as much as £12 million to get Excite to the stage when it could achieve a significant IPO or be sold to a company like Amazon. Based on this investment, Nigel believes he could produce Net Income of £8 million by the end of Year 7.

Problem 1: How much of Excite must your fund own if you were to fund the entire £12 million up-front, assuming you want to achieve a 50% IRR by the end of Year 7?

Reference no: EM133002870

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