Firm has required minimum irr on their investment

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Reference no: EM132059211

Assume a firm has a required minimum IRR on their investment if 25%. If they had purchased a company for 300 million, financed with 200 million in debt, and they assume they can exit the company at a 6x Exterprise Value to EBITDA multiple. Assume the company has paid down 125 million in debt over the past 5 years. What is the minimum EBITDA they would need five years from now to make their goal?

Reference no: EM132059211

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