How to calculate ROI in debt investment ?



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If we take 50 mil debt int exp for 1 year would be 5 mil and at the end of 5 years its gonna be 25mil+ principal pay back of 50 mil= 75mil; so from 180 mil if we reduce 75 we still have 105 on our 50 mil, so how will it be 10%?? im so confused with this session!

1 Answer(s)


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Sujith. That question should acutally read "How much debt should this project take to get a 110% ROI" and not "10% ROI". Sorry about that one. We will fix that.