An income producing property has an expected NOI of $540,000 in year 1 and $740,000 in year 2. The potential investor will hold this investment for a 2 year (Sell at the end of year 2). The owner will fund the investment using debt and equity. The loan is a fixed rate mortgage amortized over a 20 years term with an interest rate equal to 6.50% and a LTV of 75% with monthly payments. The purchase price of the property is $5,750,000 and its resale value is $6,250,000 (in Year 2) Ordinary Income Tax is 35%, the property depreciates in 39 years, where the capital gains from price appreciation is taxed at a 15% rate and the depreciation recapture tax rate is 25% The land represents 20% of the value of the property. Estimate the Before Tax Cash Flow of Year 1 Use the following table to guide your work