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Question
An investor is considering renovating a building. Total cost of renovations are expected to be $100,000 of which 75% can be borrowed. Given the after-tax cash flows to the equity investor as showed below, what is the incremental return from renovating?
A. 9.75%
B. 10.14%
C. 15.32%
D. 12.67%
Answer
This answer is hidden. It contains 2 characters.
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