Given the following information, please calculate after tax cash flow for year 1. Assuming a sales price of $1,100,000, please calculate the after tax cash flow from the sale (dont forget the depreciation recapture.) Finally, calculate the after tax IRR for the investment. Purchase Price: $900,000 Loan: $750,000, 5%, 25 years (annual payments) Year 1 NOI: $100,000 Year 2 ATCF: $33,000 Year 3 ATCF: $34,000 Use an 85/15 ratio for depreciation. 39 year, straight line. 35% tax rate on income, 15% on long term capital gains, 25% depreciation recapture. What is the IRR of the investment?

after tax cSh flow from the sale at the end pf year three is 345,828

annual loan payment: 53,214.34

annual depreciation expense : 19,615.38

ATCF for year one: 31,776.04