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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 companys weighted average cost of capital that they use as their discount rate for such calculations is 8%
The project IRR is 10.96% it is asking for the leveraged IRR.
- What is the leveraged IRR of the project ?
- 32.15%
- 24.58%
- 21.48%
- 22.85%
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