JBL Equity (JBL) invested in FLUB, a technology company with $6 million of EBITDA. JBL paid $40 million. 35% of the purchase price was financed with amortizing debt, which was repaid fully in 3 equal installments of $5.04m, with the first payment occurring at the end of Year 1. Assume FLUB's EBITDA grows by 20% each year and JBL exits after three years at a multiple of 14 times EBITDA. What is the closest to the IRR for the investment, without regard to any tax benefits attributable to interest or amortization. Explain.

Answer rating: 100% (QA)

To calculate the Internal Rate of Return IRR for the investment in FLUB by JBL Equity we need to con... View the full answer