You purchased an office building for $$10,000,0005$ years ago. It was depreciated on a straight$-$line basis over $39$ years. Assume $20\%$ was assigned to land value, assume no real property. Your expectations include: $$ Each year gross potential income of $$1,700,000$ Vacancy & collection losses equal to $12\%$ of PGI $$ Operating expenses $=40\%$ of EGI, no escalation $$ Capital expenditures $=5\%$ of EGI, no escalation $$ Mortgage: $70\%$ LTV @ $6\%$ Mortgage will be amortized over $30$ years $$ Total up$-$front financing costs $=2\%$ of the loan amount. Since we are calculating the $5$th year cash flow, recall that this component will be the remaining amortization balance. $$ Ordinary tax rate $=30\%$ Capital Gains tax $=15\%$ Depreciation recapture tax $=20\%$ Sale Proceeds in year $5=12,000,000$ Selling expenses $=4\%$ of sale proceeds $1.$ Calculate the BTCF in year $52.$ Calculate the ATCF in year $53.$ Calculate the ATER in year $5$