Given the following information regarding an income producing property, determine the internal rate of return (IRR) using levered cash flows.

Expected Holding Period: 5 years; 1st year Expected PGI: $91,200; 2nd year Expected PGI: $93,873; 3rd year Expected PGI: $96,626; 4th year Expected PGI: $99,462; 5th year Expected PGI: $102,383;

Vacancy 3% annually; Other Income $10,000 annually; Operating Expenses 40% of EGI annually.

Debt Service in each of the next five years: $30,544; Purchase Price: $897,000; Required equity investment: $223,350; Gross Sales Price at end of year 5: $994,800 with Closing Expenses of $12,000 and Disposition Fee (Brokerage Commission) of 3% of Gross Sales Price.; Remaining Mortgage Balance at end of year 5: $631,126. Show your steps used in Excel.

A) 42.30 B) 19.89 C) 22.80 D) 23.98