Your client is about to purchase an investment property and would like to acheive a discount rate of 9%. Sales research indicates that similar properties are acheiving a capitalisation rate of 6.5%. The property produces the following yearly cash flow: 1 2 3 4 LO 5 6 8 $187,000 $245,000 $260,000 $293,000 $305,000 $347,000 $388,000 $401,000 (a) What is the Net Present Value of the subject property? (b) If your client pays 2.5 million dollars for this investment at time "zero" what will their NPV be at a discount rate of 9%? What will be the revised IRR? (10 Marks)