Question 26 Not yet answered Your client, a real estate company, is evaluating a real estate project of $15,000,000 that will provide them with yearly NOI of $1,950,000 for the next 10 years and can then be resold for an amount estimated at $20,000,000. They can finance 75% of the purchase price through a 10-year mortgage with an amortization period of 25 years and an interest rate of 8%. Marked out of 5.00 Flag question Your client will only proceed with the project if its returns are greater than his WACC or cost of equity. He provides you with the following information about his company: Market value of equity $50,000,000 Cost of equity 20% Market value of debt $75,000,000 Cost of debt 10% Tax rate 30% a) Calculate the unlevered NPV of this investment Answer: b) Calculate the unlevered IRR of this investment Answer: C) Calculate the levered NPV Answer: d) Calculate the levered IRR of this investment