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Griffin puts up $100,000 in capital and borrows $100,000 at an 8% interest rate. He invests the $200,000 total with $100,000 each into two projects.
Griffin puts up $100,000 in capital and borrows $100,000 at an 8% interest rate. He invests the $200,000 total with $100,000 each into two projects. The two projects each earns $20,000 for a total profit of $40,000. What is the leverage factor? Responses
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