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Use the following information to answer the questions below (note, same numbers used in multiple questions): Current (t=0) Values (known for certain) E (CF1) =
Use the following information to answer the questions below (note, same numbers used in multiple questions): Current (t=0) Values (known for certain) E (CF1) = $1,200,000, Vo = $10,000,000 Possible Future Outcomes are risky (next year, t=1) "Pessimistic" scenario (50% Chance) CF1 = $700,000 V1 = $8,500,000 "Optimistic" scenario (50% Chance) CF1 = $1,600,000 V1 = $12,500,000 Optional Loan Available (annual interest only payments) Loan = $7,000,000, Interest Rate: 9% Using the optional loan, what is the appreciation return under the "Optimistic" scenario? Please enter answer in following format, 7.50% would be 7.50, do not use % signs. Use the following information to answer the questions below (note, same numbers used in multiple questions): Current (t=0) Values (known for certain) E (CF1) = $1,200,000, Vo = $10,000,000 Possible Future Outcomes are risky (next year, t=1) "Pessimistic" scenario (50% Chance) CF1 = $700,000 V1 = $8,500,000 "Optimistic" scenario (50% Chance) CF1 = $1,600,000 V1 = $12,500,000 Optional Loan Available (annual interest only payments) Loan = $7,000,000, Interest Rate: 9% Using the optional loan, what is the appreciation return under the "Optimistic" scenario? Please enter answer in following format, 7.50% would be 7.50, do not use % signs
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