(a) A buyout target has EBITDA of million. The debt market will lend up to x EBITDA on these types of buyout deals. How much would a private equity buyer be willing to pay for the target if: -she expected the target firm's assets to have a market value of million in years - she intended to finance the acquisition with as much debt as the market would allow, and then pay it down at the rate of million per year for five years, and -she required a % annually compounded return on her investment over five years? 

(b) Assume the private equity buyer made the investment of capital in the amount you answered in part (a), but now was able to pay down the debt amount to zero over the five year period. Other values remained as previously forecasted. What IRR would she have earned on her investment in that case?