Rafael owned an apartment building that burned down. The empty lot is worth $50,000 and Rafael has received $290,000 from the insurance company. Rafael plans to build another apartment building that will cost $415,000. His real estate adviser estimates that the expected value of the finished building on the real estate market will be $530,000 next year. The discount/interest rate is 7%. What are the NPV and IRR of this decision?

$80,327; 27.71%

-$30,327; -13.98%

$30,327; 13.98%

-$80,327; -27.71%