As you reduced the amount of equity in the proposed capital


The proposed capital structure for a 100,000 SF multi-tenanted office building includes 65% debt and potential project returns of 15%. The building costs $10M and the land value is $2M. As you reduced the amount of equity in the proposed capital structure, the projected IRR increases. This is an example of what?

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Financial Management: As you reduced the amount of equity in the proposed capital
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