You are considering the acquisition of a small office building. The purchase price is $975,000. Sixty-five percent of the purchase price can be borrowed with a 30-year, 5 percent mortgage. Payments will be made annually. Up-front financing costs will total two percent of the loan amount. The expected before-tax cash flows from operations--assuming a 5-year holding period-are as follows: 18 21 Year BTCF 24 $48,492 1. 27 53,768 3. 59,282 30 65,043 $71.058 65,043 20 21 $71,058 The before-tax cash flow from the sale of the property is expected to be $495,050. What is the net present value of this investment, assuming a 10 percent required rate of return on levered cash flows? 23 24 26 27 O a) $90,295 29 30 O b) $35,908 Oc) $18,788 32 33 O d) -$11.620 $105,396