A Client Has Requested Advice on a Potential Investment Opportunity

Multiple Choice

A client has requested advice on a potential investment opportunity involving an income producing property.She would like you to determine the internal rate of return of the
Investment opportunity based on the following information.Expected Holding Period: 5 years;End of first year NOI estimate: $113,900;NOI estimates in subsequent years will grow by 5% per year;Price at which the property is expected to be sold at the end of year 5: $1,615,205.22;Current market price of the property: $1,475,667.71.

A) -15.30%
B) 8.60%
C) 9.86%
D) 10.00%