Assume that an investor acquired a property 5 years ago at a cost of $ 200000. The property was 15 years old at the time of purchase and was financed with a 75% mortgage at 11% interest for 25 years. The investor uses a straight line depreciation with 80% of the original cost allocated to building and 20% to land. Assume that at the time of the purchase the property could be depreciated with a 80% of the original coast allocated to building and 20% tp land. Assume that at the time of the purchase the property could be depreciated for 19 years. The marginal tax rate is 50% and the capital gains tax is 28%. The property could be sold for $250000 today less selling costs of 6%. If the property was sold at year 10 it would fetch $ 289819 before the selling costs of 6%. The following information is available: year NOI year NOI 1 19500 6 23725 2 20280 7 24436 3 21091 8 25170 4 21935 9 25925 5 22812 10 26702 Please advise on whether the property should be disposed today (year 5) or not