NPV and IRR

You are an analyst at a REIT and have been asked to make a recommendation if the company should invest in the following three properties.

Apartment Complex

Purchase Price

$19 million

NOI Year 1

$1.9 million

NOI Year 2

$2 million

NOI Year 3

$2.1 million

NOI Year 4

$2.2 million

NOI Year 5

$2 million

Net Reversion

$22 million

Shopping Center

Purchase Price

$14 million

NOI Year 1

$1.4 million

NOI Year 2

$1.5 million

NOI Year 3

$1.7 million

NOI Year 4

$1.6 million

NOI Year 5

$1.8 million

Net Reversion

$18million

Flex Building

Purchase Price

$10 million

NOI Year 1

$900,000

NOI Year 2

$1.2 million

NOI Year 3

$1.4 million

NOI Year 4

$1.5 million

NOI Year 5

$1.6 million

Net Reversion

$14 million

Calculate the NPV and IRR on each of these properties individually and collectively assuming a discount rate of 15 percent. Which property/properties do you recommend purchasing?