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Given the following info regarding an income-producing property, determine the internal rate of return (IRR) using...

Given the following info regarding an income-producing property, determine the internal rate of return (IRR) using levered cash flows: expected holding period: five years; 1st year expected NOI: $89,100 ; 2nd year expected NOI: $91,773 ; 3rd year expected NOI: $94,526 ; 4th year expected NOI: $97362 ; 5th year expected NOI : $100,283; debt service in each of the next five years: $58,444 ; current market value: $885,000 ; required equity investment: $221,250 ; net sale proceeds of property at end of year 5: $974,700 ; remaining mortgage balance at end of year 5: $974,700 ; remaining mortgage balance at end of year 5: $631,026.

A. 10.6%

B. 22.9%

C.33.4%

D.12.2%

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