Interest rate on loan 4.00% 4.00% 4.00%% Loan to value 50%% 50% 50% Borrowed amount E 4,000.000 E 6,000.000 E 5,500,000 Annual net operating income E 561,600 E 745,683 E 622,181 Annual interest expense E 160,000 E 240,000 E 220,000 Annual geared net operating income E 381,600 E 655,683 E 382.181 Present value of annual geared net operating income E 6,360,000 E 10,928,057 E 6,369,687 Initial investment E 8,160,000 E 12,000,000 E 11,220,000 Net present value -E 1,800,000 -E 1,071.943 -E 4,850.313 Internal rate of return 4.689% 5.469% 3.41%