Given the following information, please calculate after tax cash flow for year $1.$ Assuming a sales price

of $$1,100,000,$ please calculate the after tax cash flow from the sale $($don$$t 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.

After tax cash flow year $1=31776\mathrm{.}04$

annual depreciation expense$=19615\mathrm{.}38$

annual loan payyment$=53214\mathrm{.}34$

What is the irr and the after cash flow from year $3?$