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erest rate of 8.00% amortized over 25 years. The property's fir 000. Assume an income tax rate of 35% was the building's cash flow after taxes in year one? -66,765 591,793 57 500

erest rate of 8.00% amortized over 25 years. The property's fir 000. Assume an income tax rate of 35% was the building's cash flow after taxes in year one? -66,765 591,793 57 500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You purchased a commercial office building for $2,200,000 one year ago. The appraisal noted the value of the land was worth $550,000. You financed the purchase through a debt instrument with a loan-to-value ratio of 60% and an interest rate of 8.00% amortized over 25 years. The property's first year of operations resulted in an NOI of $250,000. Assume an income tax rate of 35% What was the building's cash flow after taxes in year one? O $66,765 O $91,793 O $57,599 O $96,729
Transcribed Image Text:You purchased a commercial office building for $2,200,000 one year ago. The appraisal noted the value of the land was worth $550,000. You financed the purchase through a debt instrument with a loan-to-value ratio of 60% and an interest rate of 8.00% amortized over 25 years. The property's first year of operations resulted in an NOI of $250,000. Assume an income tax rate of 35% What was the building's cash flow after taxes in year one? O $66,765 O $91,793 O $57,599 O $96,729
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