A Company is looking at purchasing a real estate asset valued currently at $4,120,000. You have been asked to analyze the cash flow provided below based on a period of 5 years.

Purchase Price: $4,120,000

Sale Price: $4,900,000

Year Cash Flow

1 $150,000

2 $197,500

3 $221,000

4 $233,000

5 $252,000

PART A: If you require a 7.00% IRR and are using a discount rate of 5%, solve for the IRR.

PART B: Based on your calculations, would you recommend purchasing the property? Why or why not?