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An investment has the following characteristics: ATIRRP: After-tax IRR on total investment in the property: 9.0% BTIRRE: Before-tax IRR on equity invested: 17% BTIRRP: Before-tax

An investment has the following characteristics:

ATIRRP: After-tax IRR on total investment in the property: 9.0%

BTIRRE: Before-tax IRR on equity invested: 17%

BTIRRP: Before-tax IRR on total investment in the property: 12%

t: Marginal tax rate: 0.40

What would be the break-even interest rate (BEIR), at which the use of leverage neither favorable nor unfavorable?

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