You are an employee of a consultant company and have been given the following information to do an investment analysis of a new small income-producing property for sale to a potential investor. What is the after tax NPV using a 10% after tax equity discount rate? (round your final answer to whole numbers) $2,000,000 $300.000 3% 10% of rents 30% of EGI 3% Asking Price Rent Year 1 Growth Rent Vacancy and Coll Loss Expenses Appreciation Rate Tax Considerations Building Value Depreciation Ordinary Income Tax Rate Capital Gains Tax Rate Depreciation Recapture Tax Rate LTV Loan Interest Loan Term Payments Per Year Holding Period $1.800.000 39 years 35% 20% 25% 70% 4% 30 years 12 3 years of sale 0% price Selling Costs Equity Discount Rate After Tax Equity Discount Rate 14% 10% The above information results in the following investment analysis. Equity Loan Annual Loan Payment Mortgage Balance $600,000 $1.400.000 $80.206 $1,322.982 year 3 1 2 3 Summary Loan Information End of Year Payment Mortgage Balance Interest Principal $80,206 $1,375.345 $55.551 $24.655 $80,206 $1,349,687 $54,547 $25,659 $80,206 $1,322.982 $53,501 $26,704 3 Year PGI 1 $300.000 $30.000 ? VCL EGI 2 $309.000 $30,900 ? $83,430 $194,670 $80,206 ? Expenses NOI Debt Service BTCF $81,000 $189,000 $80,206 $318,270 $31,827 ? $85,933 $200,510 $80,206 ? ? NOI Less: Interest Less Depreciation $189,000 $55,551 $44.231 $194.670 $54.547 $46,154 $200,510 $53,501 $46,154 Less Depreciation Taxable Income Tax(Savings) ATCF $44.231 $89.218 $31.226 $46,154 $93.969 $32.889 2 $46,154 $100,855 $35,299 ? ? 3 Cash Flow from Sale in Year Sale Price Sales Costs Mortgage Balance BTCF $2.185.454 $0 $1.322,982 ? Original Cost Basis Accumulated Depreciation Adjusted Basis $2.000.000 $136.538 $1,863.462 Capital Gain Depreciation Recapture Price Appreciation $321.992 $136.538 $185.454 $37.091 Tax on Price Appreciation Tax on Depreciation Recapture Total Capital Gain Tax $34,135 $71,225 After Tax Cash Flow from Sale ? What is the after tax NPV using a 10% after tax equity discount rate? (round your final answer to whole numbers)