After-tax cash flow from the sale

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Consider the following values. NOIn+1: $2.8 million. Cap rate: 7.5%. Brokerage commission: 3%. Remaining mortgage balance: $12 million. Remaining book value: $14 million. Total depreciation taken: $4.9 million. Recapture tax (for depreciation taken): 25%. Tax on capital gain: 15%. What is the after-tax cash flow from the sale?

  • $19,770,667
  • $12,870,667
  • $19,525,667
  • $20,391,333

Reference no: EM131332148

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