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IMB Inc. undertakes a $ 5 0 MM project with $ 2 0 MM in cash from reserves and borrows $ 3 0 MM; the
IMB Inc. undertakes a $ MM project with $ MM in cash from reserves and borrows $ MM; the project yields a net profit of $MM what are the rates of return unlevered and levered? If the net profit turns out to be $MM what do you notice about leverage?
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