A real estate investment of $5,000,000 is expected to generate an NOI of $600,000 per year and will be resold at a cap rate of 8 % in 3 years. If the available financing is $3,000,000 at 6% with no amortization, calculate the unlevered NPV using WACC (see below) and the levered IRR.

• Market value of equity $70,000,000
• Cost of equity 25%
• Market value of debt $150,000,000
• Cost of debt 12%
• Tax rate 30%