Hello Everyone,
Here is my difficulty.
I am given the IRR (%) and the time period to get there, but I am trying to find a formula that will give me the $ amount that reaches that threshold.
For example:
Here is the line item from a term sheet for an real estate equity player.
1) 80% of the remaining Cash Flow will be distributed to (JOE) and 20% to (BILL) until (JOE) has achieved the greater of either (A) an effective annual internal rate of return of (18%), or (B) aggregate net profits of $$$.
So I know the original contribution ($1,000,000) and the desired IRR (18%). I know the term (24 Months or 2 years), but that can fluxuate based on the sell out. Is there a formula that can help me figure out the $$$ amount goal for a 18% IRR, provided the information above?
Here is my difficulty.
I am given the IRR (%) and the time period to get there, but I am trying to find a formula that will give me the $ amount that reaches that threshold.
For example:
Here is the line item from a term sheet for an real estate equity player.
1) 80% of the remaining Cash Flow will be distributed to (JOE) and 20% to (BILL) until (JOE) has achieved the greater of either (A) an effective annual internal rate of return of (18%), or (B) aggregate net profits of $$$.
So I know the original contribution ($1,000,000) and the desired IRR (18%). I know the term (24 Months or 2 years), but that can fluxuate based on the sell out. Is there a formula that can help me figure out the $$$ amount goal for a 18% IRR, provided the information above?
