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.

1. What is the annual loan payment? (Round to the nearest cent, input your answer as a positive number.)

2. What is the annual depreciation expense? (Round to the nearest cent, input your answer as a positive number.)

3. What is the after tax cash flow (ATCF) for year 1? (Round to the nearest cent, input your answer as a positive number.)

4. What is the after tax cash flow from the sale at the end of year 3?

5. What is the IRR of the investment? (12% is "12" not ".12," and round to 2 decimal places.)