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Now consider how loss carry forwards interact with leverage in determining the desirability of the investment. Applying carry forwards in a way that minimizes overall

Now consider how loss carry forwards interact with leverage in determining the desirability of the investment. Applying carry forwards in a way that minimizes overall taxes paid, compare the after-tax IRR on the investment with the 85% LTV loan in part (i) to the unlevered after-tax IRR

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