Thanks to this class, you have been enjoying wild success in your real estate career and have decided it's time to take the next step and open your own brokerage. You have found the perfect for-sale-by-owner property in Old Town Fort Collins but need to keep your costs low while you get things up and running. Fortunately, there is enough space to rent out part of the building and your favorite mortgage lender just happens to be looking for a new office. Based on your agreement with her, you have estimated the following net cash flows: Year 1 = $40,000 Year 2 = $45,000 Year 3 = $50,000 Year 4 = $55,000 You have grand ambitions, so you anticipate outgrowing the property by the end of year 4 and plan to sell it so you can purchase something larger. Your estimated proceeds from selling the property at the end of year four will be $500,000. Assuming a discount rate of 12%, what will your "going-in IRR be if the seller accepts an offer of $450,000? Less than 12% Exactly 12% More than 12%