Suppose a private equity (PE) firm makes an initial investment in company Epsilon of $5 million. Then, at the end of the first year, the firm needs to place additional capital for an amount of $2.5 million, and at the end of the fourth year, another additional capital investment of $1.5 million. Finally, the position is sold at the end of the sixth year for $15 million. Calculate the value of the IRR and the value of the MOIC.

• a) IRR is 9.4% and MOIC is 1.37x.

• b) IRR is 10.4% and MOIC is 1.67x.

• c) IRR is 11.4% and MOIC is 1.97x.