Real estate department is considering buying an office and leasing it out. They ask you to calculate the NPV (7% discount rate) and IRR of the investment and have given you the data below. Assume that the office is sold in year 20 and that the mortgage runs 20 years. Item Inflator Value 2,500 955,000 20% 4.4% Square Footage Property Price ($) Down Payment Interest Rate Closing Costs at Start Broker Fee in Year 20 Yearly Property Appreciation Rent/ sq. ft/Inflator Op. Costs/ year ($) Inflator Tax Rate Depreciation/ year ($) $5,000 5.5% 1.7% 1.5% 1.5% 3.30 9,640 21.0% 4,000