Question: 2. (10 points) As a limited partner, you committed $1,000 to a 10-year private equity funds. The capital call for your entire $1,000 came two

2. (10 points) As a limited partner, you committed $1,000 to

2. (10 points) As a limited partner, you committed $1,000 to a 10-year private equity funds. The capital call for your entire $1,000 came two years from the creation of the fund and it was completely invested in a portfolio companjy Since there were no management fees, you were promised a compound 8% return on your entire investment for as long as it was invested. The portfolio company you were invested in was sold eight years after being purchased. It was sold for 7X the purchase price. The agreed split of the carried interest was 25% to the GP and 75% to the LP. How much cash will you receive at time 10? What is your IRR

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