Consider the following information for the first year of a proposed property acquisition: effective gross income is estimated to be $1.5million; outgoings are $450,000; the investor has a 35% marginal tax rate. The asking price is $12.5million. The property is going to be acquired with a 65% loan to value ratio mortgage, interest-only with a 10-year term and 6% interest rate. Depreciation is straight-line over 39 years. It is estimated that the depreciation expense is $240,385 in year 1. Determine the first-year equity after-tax cash flow (EATCF) if there are no capital improvement expenditures or reversion items this period.

i)What is the net income of the property?

ii)Calculate the total income tax in Year 1

iii)Estimate the first-year equity after-tax cash flow if there are no capital improvement expenditures or reversion items this period

how would you work out this question using a financial calculator only? thanks!