Suppose that a $200M VC fund has a management fee of 2.5% per year for the first five years, with a reduction of .25% (25 basic points) in each year...

Suppose that a $200M VC fund has a management fee of 2.5% per year for the first five years, with a reduction of .25% (25 basic points) in each year thereafter. All fees are paid on committed capital, and the fund has a ten-year life. What are the lifetime fees and investment capital for this fund?

Year Rate Fees 1st-5th 2.5% 25m 6th 2.25% 4.5m 7th 2% 4m 8th 1.75% 3.5m 9th 1.5% 3m 10th 1.25% 2.5m Total Fund management feesLifetime fees is equal to 42.5millionInvestment capital: 200-42.5 =...