Question
A property produces a first year new operating income of $200,000. It was pruchased for $2,000,000 with an 80% LTV 30 year loan at 7%
A property produces a first year new operating income of $200,000. It was pruchased for $2,000,000 with an 80% LTV 30 year loan at 7% interest with annual payments. The land portion is valued at $200,000 and the building portion is valued at $1,800,000. Depreciation is straight line over 39 years.
a. If taxes are 25%, what is the After tax operating cash flow for the first year?
Please explain how to do this problem utilizaing a fianancial calculator. I know how to do most of it, but for some reason I can't get my calculator to come up with the correct payment. Thanks!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started