In: Finance
An office building is purchased with the following projected cash flows: NOI is expected to be $180,000 in year 1 with 2 percent annual increa The purchase price of the property is $910,000. 100% equity financing is used to purchase the property The property is sold at the end of year 4 for $970,000 with selling cost 8 %
Calculate the unlevered internal rate of return (IRR).
A. 19.9%
B. 20.7%
C. 21.5%
D. 22.3%
E. 23.1%