Comments (3)

Most Helpful
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.

    • 3
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.

Sep 12, 2019
Comment