Given the following information regarding an income producing property, determine the NPV using levered cash flows in your analysis. Required equity investment: $300,000; Expected NOI for each of the next five years: $180,000; Debt Service for each of the next five years: $125,000; Expected Holding Period: 5 years; Required yield on levered cash flows: 15%; Expected Sale Price at end of Year 5: $2,000,000; Expected Cost of Sale: $125,000; Expected Mortgage Balance at time of sale: $1,500,000.

Select one:

a.

$1,435,029.64

b.

$419,264.54

c.

$270,245.15

d.

$70,809.8