1.Apache's real estate department is considering buying a hangar and leasing it out to private jet operators. They ask you to calculate the NPV and IRR of the investment and have given you the data below. Assume that the hangar is sold in year 25 and that the mortgage runs 25 years.

Item

Value

Inflator

Square Footage

1,910

Property Price ($)

1,015,000

Down Payment

10%

Interest Rate

3.9%

Closing Costs at Start

8.00

Broker Fee in Year 25

5.0%

Yearly Property Appreciation

1.5%

Rent/ sq. ft/ Inflator

3.00

1.0%

Op. Costs/ year ($)/ Inflator

11,640

1.0%

Tax Rate

21.0%

Depreciation/ year ($)

4,524