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in excel (15 Percent) Suppose you have developed the following information for a potential investment: current market value is $1,200,000; anticipated loan to value ratio
in excel
(15 Percent) Suppose you have developed the following information for a potential investment: current market value is $1,200,000; anticipated loan to value ratio is 80 with 2 points; and predicated cash flows of ATCF1 =$38,560,ATCF2=$41,780,ATCF3=$37,210,ATCF4= $39,127, and ATER4 =$191,730. Further, assume the investor's minimum required after-tax rate of return on equity is 12%. a. What is the internal rate of return on this potential investment? b. What is the profitability index on this investment Step by Step Solution
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