An analyst for a VC firm estimates that for a particular startup, the chances of a “home-run” are 10%,
and if it happens, it will likely be 5 years from today. If the appropriate discount rate for this type of
venture is 12.0%:
a. What is the multiple of money for this investment?
b. What is the hurdle rate for this investment?

Answer rating: 100% (QA)

a For instance you invest 100 Return for year 1 12 of ... View the full answer