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An investment has the following characteristics: ATIRRP: After-tax IRR on total investment in the property:...

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Finance

An investment has the following characteristics: ATIRRP: After-tax IRR on total investment in the property: 8%BTIRRE: Before-tax IRR on equity invested: 12%BTIRRP: Before-tax IRR on total investment in the property: 10%Marginal tax rate: 0.30What would be the break-even interest rate (BEIR), at which the use of leverage neither favorable nor unfavorable?

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