1. Your client is interested in purchasing a factory unit which has been advertised at £21,250,000.  You have been instructed to advise on the viability of the investment using the Discounted Cashflow Method (long-cut)  of valuation to provide a net present value (NPV). The property has recently been let for a term of 25 years with 5 yearly rent reviews.  The rent passing is £1,700,000.00 pa with an all-risks yield of 7.5%. The growth rate is 3.5%.                                                                



Please establish the Internal Rate of Return for the above property.