$2,000,000 of required capital is funded as follows: 95% ($1.900,000) by the investors (Limited Partners) and 5% ($100,000) by the operating (General) Partner. The agreement provides that available cash flow follows a promote (carried interest) waterfall structure and is distributed as follows: 1. 8% annual preferred return payable to all partners on their equity contributed 2. Return of capital contributed 3. Remaining available cash flow distributed 80% to investors (Limited Partners) and 20% to the operating (General) partner There is no cash flow available until the sale of the investment to distribute any cash. At the end of 1 year, the investment is sold and $2,080,000 is available for distribution to the limited and general partners. a. What is the total $ amount of preferred return payable to ALL of the partners (Limited and General)

What are the general categories of capital budget scenarios? describe the overall decision-making context for each.

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?

The card shoppe needs to maintain 21 percent of its sales in net working capital. currently, the store is considering a four-year project that will increase sales from its current level of $349,000 to $408,000 the first year and to $414,000 a year for the following three years of the project. what amount should be included in the project analysis for net working capital in year 4 of the project?