Theproviderof theoriginalangelfinancingloaned AKWebDevelopers$2,000,000at the end of1994. At the end of2001,AKrepaidthe$2,000,000 principal on the loan and gavehim500,000shares inlieuofinterest.At the end of2007,he sold the 500,000shares at an averagepriceof$22.What was his rate ofreturnon theoriginalloan?Hint: Construct a time line of the cash flows, and find the internal rate of return.

Answer rating: 100% (QA)

Heres how to calculate the internal rate of return IRR on the original loan to AKWebDevelopers 1 Con... View the full answer