Private Equity
← All questionsTwo hypothetical deals each require $100 today. Deal X returns $180 at the end of year four. Deal Y returns $60 at year one and $120 at year four. With no other payments, fees or taxes, do they have the same MOIC and IRR? Explain without needing to calculate either IRR, and name one thing these metrics do not tell you.
Start with your best guess. One sentence is enough.