Suppose You Purchased an Income Producing Property for $95,000 Five

Multiple Choice

Suppose you purchased an income producing property for $95,000 five years ago. In Year 1, you were able to negotiate a lease that paid $10,000 per year at the end of each year. If you are able to sell the property at the end of year 5 for $100,000 (after receiving our final lease payment) , what was the internal rate of return (IRR) on this investment?

A) -18.18%
B) 1.03%
C) 9.57%
D) 11.37%