Investment Assumptions Cash Flow Asumptions Cash Flow Asumptions

Purchase Price $100 Year 1 $10 Year 1 $10

% Stake 10.0% Year 2 $30 Year 2 $30
Buy-In Price $10 Year 3 $50 Year 3 $50
Exit Price $400 Year 4 $80 Year 4 $80
Exit Proceeds $40
Discount Rate 10.0%

Example 1 - Simple; No Interim Cash Flows Example 2 - Interim Cash Flows Distributed Example 3 - Interim Cash Flows Accrue to Cash Balance
Personal Returns Calculation Personal Returns Calculation Personal Returns Calculation
12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22
($10) $0 $0 $0 $40 ($10) $1 $3 $5 $48 ($10) $0 $0 $0 $57

IRR 41.4% IRR 61.5% IRR 54.5%

MOIC 4.0x MOIC 5.7x MOIC 5.7x
Profit $30 Profit $47 Profit $47

NPV of Company NPV of Company NPV of Company

12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22
($100) $0 $0 $0 $400 ($100) $10 $30 $50 $480 ($100) $0 $0 $0 $570

Discount Rate 10.0% Discount Rate 10.0% Discount Rate 10.0%

NPV $173.1 NPV $299.2 NPV $289.2
10% of NPV $17.3 10% of NPV $29.9 10% of NPV $28.9

Memo: Memo: Memo:

NPV with IRR as Discount Rate: $0.0 NPV with IRR as Discount Rate: ($0.0) NPV with IRR as Discount Rate: $0.0