Please calculate the NPV and IRR and Show your steps.

Year 0 1 2 3 4 5

Purchase price -$8,500,000

NOI $901,375. $900,681. $899,962. $943,700 $961,855

Sale Price $9,360,805

Cash flow

IRR

Estimated Sale Price Two components for calculating the investment return: annual NOI and resale price Use NOI at t+1 and terminal cap rate to estimate resale price at t. Assume terminal cap is 10.6%, and you want to own the house for 5 years, what is the estimated sale price? Resale price=992,245/10.6%=9,360,805 Then what is the IRR for this investment if you purchased this house for $8,500,000? What is the NPV if the investor requires a 14% return on this investment?