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 investors after tax IRR? (round your final answer to 2 decimals) $2,000,000 $300,000 3% 10% of rents 30% of EGI 3% $1,800,000 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 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. 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 Year 1 3 PGI VCL EGI Expenses NOI Debt Service BTCF $300.000 $30.000 ? $81,000 $189,000 $80,206 2 $309,000 $30,900 ? $83,430 $194.670 $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 $46,154 $100.855 $35.299 2 ? ? Cash Flow from Sale in Year 3 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 investors after tax IRR? (round your final answer to 2 decimals)