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An Investor Is Considering Renovating a Building

Question 22

Multiple Choice

An investor is considering renovating a building.The total cost of renovation is 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? An investor is considering renovating a building.The total cost of renovation is 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%


A) 9.75%
B) 10.14%
C) 15.32%
D) 12.67%

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