Your employer, Rubio LLC, is considering an investment in an office building that has the following cash flows:

Purchase in Year 0 $ -2,750,000

Year 1. 220,000

Year 2.. 226,000

Year 3.. 250,000

Year 4 255,000

Year 5 230,000, and a sale @ $3,290,000 takes place EOY 5

The companys weighted average cost of capital that they use as their discount rate for such calculations is 12%

1. What is the projects IRR?
   1. 11.50%
   2. 10.38%
   3. 11.66%
   4. 16.12%
2. For Rubio LLC what is the NPV?
3. 1. $565,071
   2. $-168,158
   3. $37,589
   4. $-36,061