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Calculate the unlevered npv using wacc

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Reference no: EM132602184

A real estate investment of $5,000,000 is expected to generate an NOI of $600,000 per year and will be resold at a cap rate of 8 % in 3 years. If the available financing is $3,000,000 at 6% with no amortization, calculate the unlevered NPV using WACC (see below) and the levered IRR.

-Market value of equity $70,000,000

-Cost of equity 25%

-Market value of debt $150,000,000

-Cost of debt 12%

-Tax rate 30%

Reference no: EM132602184

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