What Is The Profitability Of The Practice After You Consider The Cost Of Borrowed Money (assuming the investment is made with borrowed money)?

You simply take your Return on Investment (ROI) and subtract the interest rate percentage attached to the cost of borrowed money. If the ROI is 13% and the cost of borrowed money is 5% then the profitability before taxes would be 8%, approximately.

What is your Required Rate of Return on your money? Well, certainly it has to me more than the cost of borrowed money because if wasn't, why would you borrow in the first place. Borrowed money is cheaper thatn your equity capital, your money, that's why you would use borrowed money in the first place. If you don't know how to figure our your Required Rate of Return, ask me.