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Sep 11, 2019

If your unlevered IRR is lower than your cost of debt then the resulting levered equity IRR would be lower than the corresponding unlevered IRR.

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Sep 11, 2019

Yes, negative leverage. As mentioned above, your cost of debt being higher than your returns would cause a lower levered IRR than unlevered IRR.

"The three most harmful addictions are heroin, carbohydrates, and a monthly salary." - Nassim Taleb

Sep 12, 2019
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