Initial investment = $1,300,000

Yr 1 : 140,000

Yr 2: 150,000

Yr 3: 155,000

Yr 4: 175,000

Yr 5: 190,000

Sale of property occurs at the end of Yr 5 for a price of $1,750,000

For Question 25 use the facts above, and assume that there is 65% debt financing used for the same investment. Interest is 6.00% (monthly pymts) over 240 months.

25) Cash Flow after debt service in year 2 is:

a. $77,354 b. $88,760 c. $71,765.76 d. $93,240