## How to Raise money using debt 0
Could you please provide the workings of the following 2 Questions as I couldn't get it right.

1. Assume that a project's expected return is \$180 million in 5 years for an initial investment of \$100 million? How much debt should this project take to get a 110% ROI after debt payback? Assume 10% interest on the debt.

2. If you took \$20 million as debt to fund a \$200 million project. Assuming 10% interest on the debt and returns of \$500 million in 5 years. What is your ROI? 0

specially the 2nd question Supriya as it is coming 261% as pr my calculation dont know how 161% is the resuly=t...
pls Mr. Mathews throw some lights in it... 0

For first question -
So if you invested \$100mn (50 equity + 50 debt) and got back \$180mn.
Then ROI = (180'returns'-50'debt'-25'interest'-50'equity)/50'equity' = 110% 0

In this question Debt is 20 million and interest 10% so after 5 year you have to return 30 million....if expected return after 5 years is 500 million then left over is 470 million and your investment is 180 million so ROI = (470-180)/180=161%