$(18-19$ based on info below$)$

Lady G is purchasing an office building with the following projected cash flows:

NOI is expected to be $$130,000$ in year $1$ with $5$ percent annual increases.

The purchase price of the property is $$720,000.$

$100\%$ equity financing is used to purchase the property

The property is sold at the end of year $4$ for $$860,000$ with selling costs of $4$ percent.

The required unlevered rate of return is $14$ percent.

Lady G comes to you for help.

Calculate the unlevered internal rate of return $($IRR$)$

C$.5\mathrm{.}35\%$

$.1388\%$

A$.12\mathrm{.}88\%$

D$.21\mathrm{.}88\%$