A company is looking at purchasing a real estate asset valued currently at $5,520,000. You have been asked to analyze the cash flow provided below based on a period of 7 years.

Purchase Price: $5,520,000

Sale Price: $6,100,000

Year Cash Flow

1 $250,000

2 $264,000

3 $363,681

4 $509,000

5 $532,000

6 $587,000

7 $613,700

PART A: If you require an 8.00% IRR and are using a discount rate of 10%, solve for the IRR.

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