Given the following information, calculate the after tax-cash flow for this property. Debt Service: $45,000; First-year NOI: $91,750; Tax liability: 25% of Before Tax Cash Flow.

Question

Quizplus · Accepted Answer

First, calculate the Before Tax Cash Flow (BTCF) by subtracting Debt Service from NOI: $91,750 - $45,000 = $46,750. Then, calculate the tax liability: 25% of $46,750 = $11,687.50. Finally, subtract the tax liability from the BTCF to get the After Tax Cash Flow (ATCF): $46,750 - $11,687.50 = $35,062.50.

Given the Following Information, Calculate the After Tax-Cash Flow for This