A real estate investor is considering purchasing a small ware- house. Analysis has resulted in the following facts:

The asking price is $450,000. There are 10,000 square feet of leasable area. The expected rent is $5 per square foot per year; rents are expected to increase 5 percent per year. Since the prop- erty is leased to an AAA-grade tenant for 25 more years, no vacancy factor is deducted. The tenant will pay all operating expenses except prop- erty taxes and insurance. These two expenses will equal 20 percent of the effective gross income (EGI) each year. The investor can borrow 80 percent of the total cost for 20 years at an interest rate of 7 percent with monthly pay- ments and total upfront financing costs equal to 3 per- cent of the amount borrowed. 85 percent of the total acquisition cost is depreciable over the useful life of 39 years using the straight-line method (no personal property). The investor expects to sell the property at the end of . year 5. . . The investor's ordinary income tax rate is 30 percent. No capital expenditures have been made since acquisition. Compute the after-tax cash flows from annual rental opera- tions over the five-year housing period.