You are considering the acquisition of a small office building

Question:

You are considering the acquisition of a small office building.  The purchase price is $775,000. Seventy-five percent of the purchase price can be borrowed with a 30-year, 7.5 percent mortgage.  Payments will be made annually.  Up-front financing costs will total three percent of the loan amount.  The expected before-tax cash flows from operations–assuming a 5-year holding period—are as follows: 

 YearBTCF1$48,492253,768359,282465,0435$71,058 

The before-tax cash flow from the sale of the property is expected to be $295,050.  What is the net present value of this investment, assuming a 12 percent required rate of return on levered cash flows?  What is the levered internal rate of return?