REAL ESTATE - INITIAL OUTLAY computing, investment, planning

svgleeson

SCHWESER - VOL1, PAGE150, Q36

in the IRR computing, the answer said the initial outlay is "the initial equity investment", which does not contain the portion of financed(80% of the purchase price), only 20% of the purchase price is calculated as CF0

is it correct to only include the cash portion?

and is it also applicable to the Corporate finance assigned reading - can it be used to value the project planning?

Hope someone could clarify..thanks.