Given the following information regarding an income producing property, determine the net present value (NPV) using after tax cash flows. Expected Holding Period: 5 years; 1st year Expected ATCF: $86,000; 2nd year Expected ATCF: $86,000; 3rd year Expected ATCF: $86,000; 4th year Expected ATCF: $86,000; 5th year Expected ATCF: $86,000; Current Market Value: $897,000; Required equity investment: $200,000; Gross Sales Price at end of year 5: $950,000 with Closing Expenses of $12,000 and Disposition Fee (Brokerage Commission) of 3% of Gross Sales Price.; Remaining Mortgage Balance at end of year 5: $425,000. Taxes due on sale is $55,000. Levered discount rate is 15%. Investors ordinary tax rate is 35%.

432,379

536,564

471,353

397,837