$($Extension of problem $1)$ You are still an employee of University Consultants, Ltd$.$ The investor tells you that she would also like to know how tax considerations affect your investment analysis. You determined that the building represents $90$ percent of value and would be depreciated over $39$ years $($use $\frac{1}{39}$ per year$).$ The potential investor indicates that she is in the $36$ percent tax bracket and has enough passive income from other activities so that any passive loans from this activity would not be subject to any passive activity loss limitations$.$ Capital gains from price appreciation will be taxed at $20$ percent and depreciation recapture will be taxed at $25$ percent.

a$.$ What is the investor's expected after tax internal rate of return on equity invested $($ATIRR$)?$ How does this compare with the before tax IRR $($BTIRR$)$ calculated earlier?

b$.$ What is the effective tax rate and before$-$tax equivalent yield?

c$.$ How would you evaluate the tax benefits of this investment?

d$.$ Recalculate the ATIRR in part $($a$)$ under the assumption that the investor cannot deduct any of the passive losses $($they all become suspended$)$ until the property is sold after five years.