You've completed your proforma analysis of an investment real estate deal and the following numbers (among many others) are shown on your spreadsheet: Purchase Price $12,300,000 Proposed Loan $8,500,000 Unleveraged IRR Leveraged IRR 10.66% 16.58% Unleveraged NPV Leveraged NPV 1,368,652 741,028 Regarding the proforma above, which statement is TRUE? This deal does not appear viable at this price a. Ob. There is negative financial leverage We expect to exceed our required rate of return Od. Our unleveraged discount rate is higher than the unleveraged IRR. You've completed your proforma analysis of an investment real estate deal and the following numbers (among many others) are shown on your spreadsheet: Purchase Price Proposed Loan $12,300,000 $8,500,000 Unleveraged IRR Leveraged IRR 10.66% 16.58% Unleveraged NPV Leveraged NPV 1,368,652 741,028 Regarding the proforma above, which statement is FALSE? We appear to need approximately $3.8 million of equity (ignoring closing costs; leveraged deal) a. b. The IRR amounts depend, in part, on our estimate of sale price at the end of our holding period Our required return is likely to be higher for the leveraged analysis C. We should definitely not use leverage here since it provides a lower NPV