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Question 10 10 pts Consider the purchase of a rental property for $400,000. You can borrow at 75% LTV and finance the property with a

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Question 10 10 pts Consider the purchase of a rental property for $400,000. You can borrow at 75% LTV and finance the property with a $300,000 mortgage at 6% (30-year amortization) with an annual debt service of $21,584. Expected NOI for the first 5 years is $36,000, $37,080, $38,192. $39,338, and $40,518 respectively. Assume that you can sell the property at the end of year 5 to net $417,339 with a remaining mortgage balance of $285,122. What is the leveraged IRR on this investment? 21.23% 18.3796 O 20.51% O 17.99% 24.02%

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