A property purchased for $$100,000$ with an NOI of $$7,000$ per $10$ years will be sold for $$140,000.$ Depreciation is $$3,000$ per year The investor's ordinary income tax rate is $37$ percent, the capital gains tax rate is $20$ percent, and depreciation recapture is taxed at $25$ percent.

What is the present value of the after tax cash flows discounted at a $7$ percent after tax discount rate?

$$5,220$

$$1,200$

$$49,165$

$$38,770$