Consider this hypothetical real estate development project you are considering investing in. It is a residential property development project. Here are the details: Initial Investment: The land cost and development costs for construction costs, permits, and other initial soft cost expenses: $500,000 Cash Flows: The project is expected to generate cash flows over a period of 5 years. Here are the projected annual cash flows: Year 1: $100,000 Year 2:$120,000 Year 3: $150,000 Year 4:$200,000 Year 5: $250,000 Cap Rate: The property's estimated capitalization rate (cap rate) is 8%. The cap rate is used to determine the property's value based on its net operating income (NOI). Let's assume the estimated NOI is $150,000 per year. I. Compute the Cap value of the investment II. Using a discount rate of 10%, compute the Net Present Value of the cash flows III. Calculate the Internal Rate of Return (IRR is the discount rate that makes the NPV equal to zero) IV. Recommendation