Given the Following Information Regarding an Income Producing Property,determine the Unlevered

Multiple Choice

Given the following information regarding an income producing property,determine the unlevered internal rate of return (IRR) .Expected Holding Period: 5 years;1^st year Expected
NOI: $89,100;2^nd year Expected NOI: $91,773;3^rd year Expected NOI: $94,526;4^th year Expected NOI: $97,362;5^th year Expected NOI: $100,283;Debt Service in each of the next five years: $58,444;Current Market Value: $885,000;Required equity investment: $221,250;Net Sale Proceeds of Property at end of year 5: $974,700;Remaining Mortgage Balance at end of year 5: $631,026.

A) 10.6%
B) 12.2%
C) 22.9%
D) 33.4%