Question 23 (4 points) Saved You purchase a small office building for $750,000. Below are the expected income from the investment under two different scenarios: The Probability of Bad State of economy is 0.4 and the cash flow is $50,000; The Probability of Bad State of economy is 0.6 and the cash flow is $80,000. What is the expected ROI of this investment? 8.7% 9.1% 10.7% 17.3% Question 24 (4 points) You purchase a small office building for $750,000. Below are the expected income from the investment under two different scenarios: The Probability of Bad State of economy is 0.4 and the cash flow is $50,000; The Probability of Bad State of economy is 0.6 and the cash flow is $80,000. You borrow to purchase the property and your interest rate is 7%, which is lower than the expected ROI you calculate in Question 23 above. This situation is called: neutral leverage unfavorable leverage positive leverage negative leverage