Assume that we have a commercial real estate property whose projected 5-year cash flows are the following:

Year -1: -$50

Year 0: -$100

Year 1: $20

Year 2: $25

Year 3: $30

Year 4: $35

Year 5: $140

Assuming a discount rate of 2%. Assume further that the first years annual debt service is $5. What is the Cash Throw Off (CTO)?

1. -$55

2. -$45

3. $15

4. $25