You buy a commercial real estate property at a price equal to 7 million. You own this property for one year exactly. You make a down payment equal to 2.1 million and an annual payment to an IO mortgage at a 6.25% rate, equal to 306,250. You collect the first year net operating income of this property to be 645,150. In two years, the NOI is expected to remain the same. You sell the property at the end of the first year at a terminal cap rate of 8.72% and you pay off the mortgage balance when you sell. Evaluate the IRR of this investment.