A property generates an NOI of $580,000 and the cost of tenant improvement expenditures paid for by the landlord is $215,000. The property is used to secure an interest-only loan of $2,780,000 and the annual interest rate is 7.4%. The value of the building component is $3,988,000 and the building allowance is 2.5%. The investor's marginal tax rate is 46.5%. What is the After-Tax Cash Flow (ATCF)?

a.

$255, 224

b.

None of the above

c.

$95,240

d.

$131,575

e.

$357,021