You are considering a luxury apartment building project that requires an investment of $10,500,000. The building has 50 units. You expect the maintenance cost for the apartment building to be $350,000 the first year and $400,000 the second year. The maintenance cost will continue to increase by $50,000 in subsequent years. The cost to hire a manager for the building is estimated to be $85,000 per year. After five years of operation, the apartment building can be sold for $12,000,000. The market research shows that your units should be able to command is $3,000. Assume the building will remain 90% occupied during its five years of operation. What is the rate of return that this property can expect to earn?