Hello, I have noticed that in some real estate models with a 10% project IRR and a 65% debt, the Equity IRR is 18%-20% while in some other with the same amount of debt and same interest rate, it’s much lower and closer to project IRR (11%-12%). Why is that? I am trying to understand that through the project and equity IRR diagram but I can’t find the answer. Thank you in advance.
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