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Suppose that you are contemplating an investment in an apartmentbuilding.Use the information provided below to answer the questions thatfollow:Type of Property: Apartment Building Number of Units: 30Average Rent: $1,500 per unit per monthExpected Growth in Rents: 5% per yearVacancy and Collection Losses: 5% of Potential Gross IncomeOther Income: $50 per unit per monthExpected Growth in Other Income: 3% per yearOperating Expenses: 35% of Effective Gross IncomeCapital Expenditures: 4% of Effective Gross IncomeSelling Expenses: 5% of Future Selling PriceGoing-Out Cap Rate: 6.5%Expected Purchase Price: $5.25 millionLoan Terms: Loan Amount: 85% of purchase priceInterest Rate: 4.5% per year with monthly payments and monthlycompoundingAmortization Term: 30 yearsa. What is the net present value of the before-tax unleveredcash flows if you assume a five-year holding period and a discountrate of 12%?b. What is the internal rate of return of the before-tax leveredcash flows if you still assume a five-year holding period?