I have an assignment where we are developing a new hotel.
If I put a higher mortgage percentage i.e. borrow 80% instead of 50%, my IRR goes up. Why?
I just need a few reasons to analyse.
many thanks
What affects the IRR (Internal rate of Return)?
- Posted:
- 3+ months ago by bh000899
- Topics:
- hotel, news, assignment, return, percentage, accounting, business finance, mortgage
Details:
Hi Burst
Thank you for the answer on my other question. I have not seen this as I am new and made the last question using a random email address, thus had to make a new one with a new account.
Do you know a few reasons for why IRR may change when investing in a hotel?
Many thanks