Assume the asking price for a small apartment property is $1.25 million; rents are expected to be $200,000 during the first year and expected to grow at 3 percent per year thereafter. Vacancies and collection losses are expected to be 10 percent of rents. Operating expenses will be 35 percent of effective gross income (EGI). If purchased at the asking price, and sold at the end of year three for $1.37 million, determine the project's IRR. 18.67% 12.20% 9.36% 12.45%