5. Rafael owned an apartment building that burned down. The empty lot is worth $60,000 and Rafael has received $280,000 from the insurance company. Rafael plans to build another apartment building that will cost $320,000. His real estate adviser estimates that the expected value of the finished building on the real estate market will be $435,000 next year. The discount/interest rate is 6%. What are the NPV and IRR of this decision?

$90,377; 35.94%

$30,377; 14.47%

-$30,377; -14.47%

-$90,377; -35.94%