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Questions 31-40 are four (4) points each. Your employer, Kent, LLC. is considering an investment in an office building that has the following cash flows:
Questions 31-40 are four (4) points each. Your employer, Kent, LLC. is considering an investment in an office building that has the following cash flows: Purchase in Year 0............... $ -2,750,000 Year 1.... 180,000 Year 2..... 276,000 Year 3............ 220,000 Year 4..... 239,000 Year 5 250,000, and a sale @ $3,190,000 takes place EOY 5 The company's weighted average cost of capital that they use as their discount rate for such calculations is 8% 39. What is the leveraged IRR of the project ? a. 32.15% b. 24.58% C. 21.48% d. 22.85%
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