answer A and b please

A property could be sold today for $2,22 million. It has a loan balance of $1.44 million and, if sold, the imvestor would incur a copital gains tax of $294,000. The investor has determined that if it were sold today, she would earn an iRR of is percent on equity for the past five years. If not sold, the property is expected to produce after-tax cosh fiow of $66,885 over the next year. At the end of the year, the property value is expected to increase to $2.32 milion, the loan balance will decrease to $933,000, and the amount of capital gains tax due is expected to increase to $299,000 The owner determines that if the propeity were renovated instead of sold, after tax cash flow over the next year would increase to $139,530 ond the property could be sold after one year for $2.62million. Renovation would cost $294,000. The investor would not borrow any additional funds to renovate the property Required: a. What is the rate of return that the investor would earn on the additional funds invested in renovating the property? b. Would you rocommend that the property be renovated? Assume that renovotion amount if invested elsewhere can earn a higher retum with the same or less risk: Complete this question by entering your answers in the tabs below. What is the rate of retum that the livestor would earn on the additional funds invested in rengvating the property? Wotel Round your final answer to 2 decimal places