An investor is trying to determine which of the following income properties will be

the most profitable: Building A, Building B or Building C. The table lists the

anticipated cash flows for each income property for a holding period of five years.

The discount rate is 5%.

Complete the below table by determining the Net Present Value (NPV) and the

Internal Rate of Return (IRR) for each building.

\begin{tabular}{|c|r|r|r|} \hline Year & Building A & Building B & Building C \\ \hline 0 & $1,800,000.00 & $900,000.00 & $1,700,000.00 \\ \hline 1 & $40,000.00 & $30,000.00 & $45,000.00 \\ \hline 2 & $40,000.00 & $30,000.00 & $45,000.00 \\ \hline 3 & $40,000.00 & $30,000.00 & $45,000.00 \\ \hline 4 & $40,000.00 & $30,000.00 & $45,000.00 \\ \hline 5 & $1,900,000.00 & $950,000.00 & $2,100,000.00 \\ \hline IRR & ? & ? & ? \\ \hline NPV & ? & ? & ? \\ \hline & & & \\ \hline \end{tabular}