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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

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%

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