22 Interest rate on loan 6.65% 5.32% 3.92% Loan to value 50%% 50%% 50% Borrowed amount E 4,000,000 E 6,000,000 E 5,500,000 Annual net operating income E 561,600 E 745,683 E 622,181 Annual interest expense E 266,000 E 319,200 E 215,600 Annual geared net operating income E 295,600 E 426,483 E 406,581 Present value of annual geared net operating income E 4,926,667 E 7,108,057 E 6,776,353 Initial investment E 8,160.000 E 12,000,000 E 11,220,000 Net present value E 3,233,333 -E 4,891 943 E 4,443,647 Internal rate of return 3.62% 3.55% 3.62%