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Baumgartner Development is looking to purchase an office property for $11.5 million which has a projected NOI of $850,000. It can raise up to 70%

Baumgartner Development is looking to purchase an office property for $11.5 million which has a projected NOI of $850,000. It can raise up to 70% in debt at an annual financing rate of 5.75%. What pre-tax rate of return can Baumgartner expect to earn on its equity investment if it avails of maximum available debt financing?

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