Your friend is pitching a one-year investment vehicle for you. She promises you a 12% return on investment. Her plan is to buy a distressed hotel using your equity capital and some bank loan. The bank charges 6% interest rate and the hotel is expected to generate 10% in total return. The bank can finance up to 20 percent point more in debt (i.e. if the current LTV is x%, the bank may offer up to (x+20)% LTV.

What is the maximum possible ROI possible (rounded to zero decimal places)?

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