*Use excel*

You are analyzing a property that popped up on CREXI. Real estate taxes and management services cost 42,362 and 31,563, respectfully. Other expenses are 15,369. The expenses will increase by 2.5% in year one and continue increasing at that rate. If the average rent over the five years is 201,300, you purchase the property for $400,000, and your required return is 12%, then what is the NPV?

A) 26,356

B) -5,698

C) 4,789

D) 12,635

C) -19,277