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Given the following information regarding an income producing property, determine the internal rate of return...

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Given the following information regarding an income producing property, determine the internal rate of return (IRR) using levered cash flows: 3rd 4th 5th Expected Holding Period: 1st year Expected NOI: 2nd year Expected NOI: year Expected NOI: year Expected NOI: year Expected NOI: Debt Service in each of the next five years: Current Market Value: Required equity investment: Net Sale Proceeds of Property at end of year 5: Remaining Mortgage Balance at end of 10.6% 5 years $89,100 $91,773 $94,526 $97,362 $100,283 $58,444 $885,000 $221,250 $974 $631,026 Year 5: 22.9% 12.2% 33.4%

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