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. Canvas will ask you other questions in

addition to these. So, calculate all of this first, then proceed to the actual quiz questions. They are given

one at a time, each as a separate quiz. Do not move on to the next question until you have the current

one correct. Since some of the answers build on the previous question, theres no point in moving

forward until you have the current question correct. Notice that Quizzes 1-4 are one point, but Quiz 5 is

6 points with just one answer. There is no time limit and there is no limit on the number of attempts.

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?