Estimate the before-tax irr on equity

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Question - A property is financed with an 70% loan-to-value ratio at 8% interest over 25 years. Estimate the Before-tax IRR on Equity (BTIRRE) given that the Before-tax IRR on Property (BTIRRP) is 10%?

a. 14.67%

b. 11.4%

c. 14.0%

d. 2.00%

Reference no: EM132795226

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