15 . Suppose a property can be bought for $1 000 000 and it will provide $100 000 year net cash flow forever , and you can borrow a perpetual interest -only mortgage secured by that property at an 8 5 / interest rate , up to an amount of $750 000 ( a ) Does this present " positive " or " negative leverage " and ( b ) why ? ( C ) Will the expected return to the levered equity be less than 8 5% exactly 8. 59 between 8 .5% and 109 , exactly 10% or greater than 109 ? ( 1 ) Do you think that the use of leverage in this case will increase the NPY of the investment for the equity investor in the property ? ( @ ) Why or why not