An office building is purchased with the following projected cash flows: NOI is expected to be $130,000 in year 1 with 5 percent annual increases. The purchase price of the property is $720,000. 100% equity financing is used to purchase the property The property is sold at the end of year 4 for $860,000 with selling costs of 4 percent. The required unlevered rate of return is 14 percent.

a. Calculate the unlevered internal rate of return (IRR). b. Calculate the unlevered net present value (NPV).