You are considering the purchase of a small apartment complex. - The purchase price, including acquisition costs, is $600,000. - Gross potential income in the first year is estimated at $75,000 and vacancy and collection losses are estimated to be 10 percent of gross potential income. - Operating expenses and capital expenditures are expected to be $16,000 and $1,000, respectively, in year 1. - The investor will obtain a $400,000 loan at 6 percent annual interest with annual payments for 25 years (constant-payment, fully-amortizing). - Additional upfront financing expenses will equal $15,000. - Assume that 25 percent of the purchase price is payment for land and that the building will be depreciated over 27121 years using straight-line depreciation. There is no personal property. - Your ordinary and capital gain tax rates are 35 and 15 percent, respectively. Estimate the after-tax cash flow from the first year of operations (rounded to \$Hundreds). Excel a) $17,600 b) $17,300 a) $17,600 b) $17,300 c) $16,200 d) $17,900 e) $15,500 f) $19,200