You have a project that will involve the purchase of real estate and renovation of the real estate.
Your our analysis indicates the project should have an IRR of 10 percent. Financing will consist of a mortgage (debt) of $90,000 dollars which represents 80 percent of the financing. The pretax cost of debt is estimated to be 8.5 percent. The remaining proportion of the financing will come from selling shares of your stock portfolio. Historically, your return has been 11 percent. Your marginal tax rate is 21 percent.
How would excel be used to figure this out?
Should you pursue the project?
+5
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “You have a project that will involve the purchase of real estate and renovation of the real estate. Your our analysis indicates the project ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Home » Business » You have a project that will involve the purchase of real estate and renovation of the real estate. Your our analysis indicates the project should have an IRR of 10 percent.