Compute the cash flow-tax flow and after tax cash flow

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Compute the cash flow, tax flow, and after tax cash flow for the following real estate investment property.

Expected gross rents are expected to be $60,000 per year

Expected total variance allowance is 5%

Operating expenses per year: $8,000

Payment of mortgage per year

               Interest: $12,000

               Principal $6,000

               Total: $18,000

Depreciation for the year: $18,750

The owner’s income tax bracket is 25%

Cash Flow______

Tax Flow_______

After tax cash flow_______

Reference no: EM13942209

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