A property is forecasted to have cash flows for the next 6 years as show below. (Assume no additional capital or leasing expenses.) The going in cap rate is 7.5%, the going out cap rate is 8.0%, and it is assumed that the property is sold at the end of Year 5 with a 3% cost of sale.

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

NOI 2,300,000 2,390,000 2,500,000 2,600,000 2,750,000 2,800,000

What is the IRR of this Investment? (%)

What is the Year 3 Return on Investment (ROI)? (%)