1) NPV and IRR calculations (10 points)

I will invest $500,000 in a property and anticipate the following cash flows (assume they occur at the end of each period to make things simple):

Cash Flow year 1: $90,000

Cash Flow year 2: $95,000

Cash Flow year 3: $100,000

Cash Flow year 4: $105,000

Cash Flow year 5: $110,000 + Net Sales proceeds of $650,000

If my cost of capital is 12%, what is the IRR and the NPV of this investment? Should I pursue this investment? Assume the cash flows occur at the end of each year to simplify your calculations.