Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions