Five years ago, the venture capital fund Techno Fund II made a $4 million investment in Optical Fibers Corporation and in return received 1 million shares representing 20 percent of Optical Fibers' equity.

Optical Fibers is now planning an initial public offering in which it will sell 1 million newly created shares for $50 per share. Techno has chosen to exercise its demand registration rights and will sell its shares-alongside the newly created shares-in Optical Fibers' IPO.

The investment banks underwriting Optical Fibers' IPO will charge a 7 percent underwriting spread, so both the firm and Techno Fund II will receive 93 percent of the $50 per-share offer price.

Assuming the IPO is successful, calculate the compound annual return that Techno will have earned on its investment.