You bought a property with an absolute NNN lease. It has 15 years remaining, but you will sell it at the end of year four. You purchased it at an 7.35% cap rate, but will project to sell it at an 8.75% cap rate. Your cost of capital is 12% and the NOI has a growth rate of 3%. Your selling closing costs are 5%. What is your IRR? Rent in year 1 is 105,000. No debt. Buying costs are 2%. Hint: Remember to factor in you purchase price.

A. 4.74%

B. 6.59%

C. 7.26%

D. 9.62%

E. 9.12%