Given the following, what is the after-tax IRR?

Purchase Price	$9,000,000
Mortgage	$6,000,000
Interest Rate	7.5%
Amortization Term	20 Years
Payment Period	Monthly
Land Cost 15.0%	$1,350,000
Improvement Cost	$7,650,000
Annual Depreciation	$196,154
IRS Mid-Month Convention	0.96
Tax Rate	35.0%

Capital Gains Tax Rate		15.0%
Total Capital Improvements		$0
Depreciation Recapture Tax		25.0%
Sale Price (Property Reversion)		$9,360,805
Costs of Sale		0.0%
Holding Period		5 Years

	Year 1	Year 2	Year 3	Year 4	Year 5
NOI	$901,375	$900,681	$899,962	$943,700	$961,855
Interest	$445,436	$434,987	$423,727	$411,593	$398,517
Depreciation	$187,981	$196,154	$196,154	$196,154	$196,154
Taxable Income	$267,958	$269,540	$280,081	$335,953	$367,184
Tax Rate
Taxes
NOI
Debt Service
PTCF
Taxes
ATCF

A) 12.22%

B) 16.70%

C) 12.51%

D) 12.09%