IRR and MOIC

This problem practices a core private equity and LBO concept, the two standard ways sponsors think about performance: a time-based return measure and a cash multiple. Candidates need to understand how investors judge both the speed of the return and the scale of the gain, since those two perspectives capture different parts of an investment outcome. Interviewers ask this because LBO investing is built around comparing entry price, cash generation, and exit value, so you need to know the vocabulary and logic used to assess whether a deal is attractive.