Suppose an Industrial Building Can Be Purchased for $2,500,000 and Is

Multiple Choice

Suppose an industrial building can be purchased for $2,500,000 and is expected to yield cash flows of $180,000 each of the next five years (Note: assume payments are made at end of year) . If the building can be sold at the end of the fifth year for $2,800,000, calculate the IRR for this investment over the five year holding period.

A) 0.09%
B) 4.57%
C) 9.20%
D) 10.37%