单选题
An investor gathered the following information about a real estate investment:
A、
Cost of the property
B、
$800000
C、
Amount financed by mortgage loan
D、
80%
E、
Interest rate on mortgage loan
F、
13%
G、
Present value of after-tax cash flows from the investment
H、
$156000
I、
Investor's required rate of return for an equity investment
J、
15%
【正确答案】
C
【答案解析】
NPV= -800000× (1-80%) +156000= -4000＜0. When NPV=0, then IRR = 16%. If NPV＜0, then investment's yield to an equity investor is less than 16%.
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