1. You are an employee of a consultant company and have been given the following information to do an investment analysis of a new small incomeproducing property for sale to a potential investor. What is the Before Tax Equivalent Yield computed using the After Tax IRR? (round your final answer to 2 decimals)

Asking Price	$2,000,000
Rent Year 1	$300,000
Growth Rent	3%
Vacancy and Coll Loss	10%	of rents
Expenses	30%	of EGI
Appreciation Rate	3%
Tax Considerations
Building Value	$1,800,000
Depreciation	39	years
Ordinary Income Tax Rate	35%
Capital Gains Tax Rate	20%
Depreciation Recapture Tax Rate	25%
LTV	70%
Loan Interest	4%
Loan Term	30	years
Payments Per Year	12
Holding Period	3	years
Selling Costs	0%	of sale price
Equity Discount Rate	14%
After Tax Equity Discount Rate	10%

The above information results in the following investment analysis.

What is the Before Tax Equivalent Yield computed using the After Tax IRR? (round your final answer to 2 decimals) What is the Before Tax Equivalent Yield computed using the After Tax IRR? (round your final answer to 2 decimals)